Massachusetts Contractor License Bond Requirements
You may need to post a contractor license bond to obtain your Massachusetts contractor license.
It’s not necessary to get bonded to obtain a MA general contractor license or MA home improvement contractor license on the state level.
However, if you are an out-of-state contractor, you need a surety bond that you have to provide to the state Department of Revenue. Bonding is also required for contractors in the City of Willougbhy by its Building Department.
When you want to start your licensing process, it’s best to check with your local authorities whether you have to provide a bond.
Why Is This Bond Required?
Massachusetts contractor license bonds ensure that you will follow all applicable laws when operating as a licensed or registered contractor. They protect your customers against harmful illegal actions you may commit.
A party who has suffered damages can file a claim against your surety bond. This is how they can demand fair compensation for, say, incomplete or low-quality construction work you’ve provided. It can be up to the penal sum of the bond that you have provided.
Need more details on how surety bonds work? Don’t miss our extensive ‘What is a surety bond’ guide.
Want to get further information on the bonding requirements for Massachusetts contractors? You can speak with our bonding experts by calling us at 866.450.3412.
What’s the Massachusetts Contractor License Bond Cost?
The price that you have to pay to get bonded depends on the bond amount that the respective licensing authorities in Massachusetts have set.
Some of the requirements are:
- $25,000 bond for contractors in the City of Willougbhy
- 6.25% of the total price of the contract for out-of-state contractors who want to work in Massachusetts
The cost of your Massachusetts contractor license bond is a fraction of the required amount. It depends on the strength of your personal and business finances.
Factors That Determine Your Bond Cost
The most important factor that influences your bond cost is your personal credit score. With a FICO score of 700 or higher, you can get a bond rate as low as 1% of the bond amount.
The other indicators that your surety provider considers when formulating your premium are:
- Personal and business finances
- Any fixed and liquid assets
- Professional experience
For a complete overview of how your bond cost is set, you can consult our detailed surety bond cost guide.
You can check an estimate of the cost of your bond in the table below.
| Bond Type | Bond Amount | Bond Cost |
|---|---|---|
| City of Athol Contractor Bond | $4,000 | Starting at $100 |
| Town of Wakefield Contractor Bond | $5,000 | Starting at $100 |
| City of Gardner Contractor Bond | $5,000 | Starting at $100 |
| City of Boston Street Opening Bond | $5,000 | Starting at $100 |
| City of Boston Street Opening Bond | $20,000 | Starting at $200 |
| City of Melrose Contractor Bond ($5,000 per location or $50,000 blanket bond) | $5,000–$50,000 | Starting at $100 |
| City of Salem Sign Contractor Bond | $1,000 | Starting at $100 |
| Out of State Contractor Tax Payer Guarantee Bond (Bond amount is 6.25% of the total price of the contract) | $1,000–$25,000 | Starting at $100 |
| Town of Braintree Contractor Bond | $5,000 | Starting at $100 |
| Town of Dighton Contractor Bond | $10,000 | Starting at $100 |
| Town of Mattapoisett Water & Sewer Contractor Bond | $5,000 | Starting at $100 |
| Town of Palmer Contractor Bond | $1,000–$250,000 | Starting at $100 |
| Town of Palmer Contractor Bond | $250,001–$500,000 | Starting at $2,500 |
| Town of Stoughton Contractor Bond | $5,000 | Starting at $100 |
| Town of Webster Contractor Bond | $5,000 | Starting at $100 |
| Town of Westminster Contractor Bond | $5,000 | Starting at $100 |
| Town of Burlington Street Opening Bond | $10,000 | Starting at $100 |
| City of Cambridge Sidewalk Repair Payment Bond | $1,000–$100,000 | Starting at $100 |
| City of Newton Payment Bond | $1,000–$100,000 | Starting at $100 |
| City of Cambridge Sidewalk Permit Bond | $5,000 | Starting at $100 |
| Town of Needham Street Opening Permit Bond | $5,000 | Starting at $100 |
| Boston Water and Sewer Commission Bond | $20,000 | Starting at $200 |
How to Get Your Bond
Ready to get bonded? You can click on the banner below to get a free contractor license bond quote.
You can reach us at 866.450.3412 for any questions you have about the Massachusetts contractor license bonding process.
Bryant Surety Bonds is licensed to issue contractor license bonds in all 50 states. We can assist you to get bonded as a contractor anywhere in the country!
