Most specialty contractors in Minnesota must post a surety bond with the Minnesota Department of Labor and Industry (DLI) before performing licensed work in the state, covering the following trade categories:
- Electrical
- Elevator
- Plumbing
- Mechanical
- Roofing
- and several other trade categories.
Residential building contractors and remodelers are the main exception; they pay into the state's Contractor Recovery Fund instead of filing a bond.
Several Minnesota cities also require local contractor bonds in addition to any state DLI requirement.
Minnesota Contractor License Bond Requirements
Minnesota contractor license requirements and bonding obligations are set at the state level by the DLI for most licensed contractor types. All state-level bonds listed below are filed directly with the DLI's licensing division and are valid for a two-year term, unless otherwise noted.
Electrical Contractors
Businesses performing electrical work in Minnesota must file a $25,000 bond with the DLI. This is a condition of holding an electrical contractor license.
The bond guarantees three things: compliance with Minnesota licensing laws, faithful performance of contracted electrical work, and payment of valid claims if the contractor fails to deliver. It renews on the same two-year cycle as the license itself.
Elevator and Limited Elevator Contractors
An elevator or limited elevator contractor license requires a $25,000 bond filed with the DLI.
The bond guarantees compliance with Minnesota elevator safety laws. It also covers faithful performance of installation, inspection, and maintenance contracts. The bond term matches the two-year elevator contractor license cycle.
Plumbing and Subsurface Sewage Treatment Contractors
Plumbing contractors must file a $25,000 bond with the DLI as a condition of licensure.
The bond guarantees compliance with the Minnesota State Plumbing Code and other applicable licensing laws. It also guarantees faithful performance of plumbing contracts.
Subsurface sewage treatment system (SSTS) contractors file the same $25,000 bond. This is because SSTS registration runs through the same DLI plumbing contractor bond process.
Pipe Laying, Satellite System, and Technology System Contractors
Pipe laying, satellite system, and technology system contractors each need their own $25,000 bond with the DLI.
Each bond guarantees compliance with the licensing laws for that category. It also guarantees faithful performance of contracts entered into under that license. All three follow the standard two-year DLI renewal term.
Mechanical Contractors
Minnesota does not license mechanical contractors at the state level. However, any business doing gas, heating, ventilation, cooling, air conditioning, fuel burning, or refrigeration work must still file a $25,000 bond with the DLI before starting work.
The bond guarantees compliance with the Minnesota State Mechanical Code. It also guarantees payment of valid claims from customers, employees, or suppliers harmed by non-performance.
The filing fee is $100. The bond is valid for two years and must be renewed before expiration to keep working legally. Full requirements are available at DLI Mechanical Contractor Bond Requirements.
High-Pressure Pipefitting Contractors
High-pressure pipefitting contractors must file a $15,000 bond with the DLI as a condition of licensure.
The bond guarantees compliance with Minnesota's high-pressure piping safety laws. It also guarantees faithful performance of installation and maintenance contracts. It renews on the same two-year schedule as the license.
Residential Roofer Contractors
Residential roofer contractors need a state roofer license and a $15,000 bond filed with the DLI before working on residential properties.
The bond guarantees compliance with Minnesota's residential contractor licensing laws. It also guarantees proper performance of roofing work and payment of valid claims tied to substandard work or non-performance. It renews on the same two-year schedule as the license.
Sign Contractors
Sign contractors must file an $8,000 bond with the DLI to operate statewide.
The bond guarantees compliance with Minnesota licensing laws and faithful performance of sign installation and maintenance contracts. There's a key advantage to filing at the state level: cities that license sign contractors cannot require a separate local bond if a state bond is already on file. Full requirements are available at DLI Sign Contractor Bonds.
Water Conditioning Contractors
Water conditioning contractors must file a $3,000 bond with the DLI as a condition of licensure.
The bond guarantees compliance with Minnesota licensing requirements. It also guarantees faithful performance of installation and service contracts. It renews on the same two-year cycle as the license.
Manufactured Home Installers
Manufactured home installer licensure requires a $1,000 bond. This is the smallest bond amount among DLI-regulated contractor types, reflecting the narrower scope of work the license covers.
The bond guarantees compliance with Minnesota's manufactured home installation standards. It also guarantees faithful performance of installation contracts.
Residential Building Contractors and Remodelers
Residential building contractors and remodelers don't file a surety bond for initial licensing. Instead, they contribute to the state's Contractor Recovery Fund.
The fund compensates eligible consumers for losses tied to contractor fraud, failure to perform, or conversion of funds. It serves the same consumer protection purpose as a surety bond.
A $40,000 surety bond only comes into play if a contractor's license is suspended after a fund payout. It's required for reinstatement in that case.
Contractors Working on Commercial Projects
Minnesota has no state contractor license for general commercial construction work. Contractors performing commercial work register with the DLI through its Contractor Registration Program instead of obtaining a license.
Note: contractors who also hold a trade-specific DLI license (electrical, elevator, high-pressure piping, or plumbing) still need that license for any qualifying work. This applies regardless of whether the project is commercial or residential.
Out-of-State Contractors
Out-of-state contractors working on Minnesota projects valued at $50,000 or more must file a Non-Minnesota Contractor Tax Bond with the Minnesota Department of Revenue.
The bond equals 8% of the total contract value. It guarantees payment of applicable Minnesota sales and use taxes on the project.
This bond is filed with the Department of Revenue, not the DLI. It's separate from any DLI trade-specific license bond. An out-of-state electrical contractor, for example, may need to file both.
City and Municipality Contractor Bonds
Many Minnesota cities require a local contractor bond in addition to any state DLI bond. These local bonds are set independently by each municipality.
Bond amount, obligee, and filing requirements vary by city and trade type. Not every city has a bond requirement, and requirements can change. Always confirm local bond requirements directly with your city or county licensing department before applying.
How Much Does a Minnesota Contractor License Bond Cost?
Your bond premium is a percentage of the required bond amount, determined by the surety company based on your application profile. The primary factor is your personal credit score. Rates start at 1% of the bond amount, with a $100 minimum. Most state-level contractor bonds in Minnesota are $25,000, which means most applicants start at $250 per year. If your credit is below average, your rate will be higher, but coverage is still available for all credit profiles.
| Bond Type | Bond Amount | Bond Cost |
|---|---|---|
| State-Wide Contractor Bonds | ||
| Electrical Contractor Bond | $25,000 | Starts at $250 |
| Elevator or Limited Elevator Contractor Bond | $25,000 | Starts at $250 |
| Mechanical Contractor Bond | $25,000 | Starts at $250 |
| Pipe Laying Bond | $25,000 | Starts at $250 |
| Plumbing Contractor Bond | $25,000 | Starts at $250 |
| Satellite System Contractor Bond | $25,000 | Starts at $250 |
| Subsurface Sewage Treatment Contractor Bond | $25,000 | Starts at $250 |
| Technology System Contractor Bond | $25,000 | Starts at $250 |
| High-Pressure Pipefitting Contractor Bond | $15,000 | Starts at $150 |
| Residential Roofer Contractor Bond | $15,000 | Starts at $150 |
| Sign Contractor Bond | $8,000 | Starts at $100 |
| Water Conditioning Contractor Bond | $3,000 | Starts at $100 |
| Installer Bond | $1,000 | Starts at $100 |
| Non-Minnesota Contractor Tax Bond | 8% of contract value | Starts at $100 |
| Municipality-Specific Contractor Bonds | ||
| City of St. Cloud Commercial Contractor Bond | $25,000 | Starts at $250 |
| City of Minneapolis Residential Specialty Contractor Bond | $10,000 | Starts at $100 |
| City of Minneapolis Sign Hanger and Sign Painter Bond | $10,000 | Starts at $100 |
| City of St. Paul Building Contractor Bond | $2,500 | Starts at $100 |
| City of St. Paul Sign Contractor Bond | $10,000 | Starts at $100 |
| City of St. Paul Sidewalk Contractor Bond | $5,000 | Starts at $100 |
Note: The municipality-specific bonds listed above are not an exhaustive list. Many other cities and towns in Minnesota have their own contractor bonding requirements. Always check with your local building or licensing department to confirm the current bond requirements in your specific municipality before applying.
Use our free bond cost calculator below for a precise estimate based on your credit score:
Surety Bond Cost Calculator
Tell us where to send you your FREE estimate
SEND ME MY ESTIMATE!We'll never share your information with third parties
Thank you for your request!
The ballpark estimate on your premium is: $100 - $167
We've sent a copy of your estimate on your email as well.
Want an exact quote? Simply fill out our online application It's fast and 100% free!
Get a free exact quote Get another estimateCredit score carries the most weight, but sureties might also review:
- Business financial statements (revenue, cash flow, financial health)
- Available liquid assets and reserves
- Years of experience in the trade
- How long the business has been operating
Stronger financials and longer track records generally translate to lower rates, even when personal credit isn't perfect. Bryant Surety Bonds works with 20+ carriers to find the most competitive rate for your profile, and our agents can advise on ways to strengthen your application before you apply.
Can I Get a Minnesota Contractor License Bond with Bad Credit?
A low credit score won't stop you from getting bonded in Minnesota. Bryant Surety Bonds approves most applicants regardless of credit history, and we use a soft credit pull only, so checking your eligibility has no impact on your score.
Applicants with lower scores will pay a higher rate (5-15% of the bond amount) than those with strong credit, but the bond remains available across all credit profiles. Learn more through our Bad Credit Surety Bond Program.
How to Get Your Minnesota Contractor License Bond
- Apply online. Complete our short application form below.
- Receive your quote. Your quote arrives by email, typically within hours.
- Get bonded. Pay online and receive your bond certificate by email. For DLI-filed bonds, upload your certificate directly into the DLI's IMS License Management System as part of your license application.
The entire process can often be completed in a single day, keeping your license application on track without delays. If your bond is not accepted by the obligee for any reason, we offer a 100% money-back guarantee.
Bryant Surety Bonds is licensed to issue surety bonds in Minnesota under license number 40635795.
Minnesota Contract Bonds
A contractor license bond is a separate product from the contract bonds required for certain Minnesota projects. If you're bidding on public projects or larger private contracts, the project owner or contracting authority may also require a bid bond, performance bond, or payment bond. These are project-specific bonds that apply to a particular job; they're not filed with the DLI and are separate from your license bond entirely.
How to Get a Minnesota Contractor License
The DLI issues most Minnesota contractor licenses, including residential building contractor, residential remodeler, electrical contractor, and roofing licenses. Commercial general contractors and mechanical contractors are exceptions handled separately (see the note below). The process for DLI-licensed contractors generally includes:
- Determine your license type
- Register your business entity in Minnesota
- Designate a qualifying licensed individual for your trade where required
- Pass the DLI pre-licensing exam for your trade (no prior experience required for residential contractor and remodeler licenses; experience requirements apply for electrical and plumbing trades)
- Pass the required trade examination
- Obtain workers' compensation insurance and any required liability coverage
- Obtain your contractor license bond and upload it to the DLI's IMS License Management System (residential building contractors and remodelers pay into the Contractor Recovery Fund instead of filing a bond)
- Submit your application and pay the applicable licensing fees
Note that mechanical contractors don't need a state license but must file a $25,000 Minnesota mechanical bond with the DLI. Commercial general contractors register with the DLI through its Contractor Registration Program and may additionally obtain a local contractor license through the city or county where they operate.
Check out our Minnesota Contractor License Guide for detailed information about each license type, exam requirements, fees, and the full application process.
Minnesota Contractor License Bond Renewal
State-level bonds filed with the DLI and local city bonds run on different schedules:
- State bonds (DLI-filed): 2-year term, aligned with most contractor license renewal cycles.
- Local city bonds: Typically annual.
Bryant Surety Bonds sends renewal reminders 1–2 months before expiration on any active bond, so there's no gap in your coverage.
If your bond lapses before renewal, the DLI or the local licensing authority can suspend your license or permits until a new bond is filed. Renewing follows the same process as the original application: quick and handled online.
Frequently Asked Questions
Do residential building contractors need a surety bond in Minnesota?
Not for initial licensing. Residential building contractors and residential remodelers pay into the state's Contractor Recovery Fund rather than filing a surety bond. The fund compensates consumers who suffer a financial loss due to contractor fraud, failure to perform, or conversion of funds. A $40,000 surety bond is only required if a contractor's license is suspended following a fund payout and they are seeking reinstatement.
I'm a mechanical contractor. Do I need a license from DLI?
No. Minnesota does not require mechanical contractors to hold a state license. However, you must file a $25,000 mechanical contractor bond with the DLI before contracting to perform gas, heating, ventilation, cooling, or refrigeration work in the state. The bond filing is valid for two years and carries a $100 filing fee with the DLI. Individual employees of mechanical contractors may still need local licenses or competency cards from the cities where they work.
What happens if my Minnesota contractor bond is canceled or lapses?
If your surety company cancels your bond, they are required to give you and the relevant authority at least 30 days of advance written notice for DLI-filed bonds. If a replacement bond isn't filed before the cancellation takes effect, the DLI can suspend your contractor registration or license, and local municipalities can revoke your local contractor license until a new bond is on file. Bryant Surety Bonds monitors active bonds and will alert you well before a cancellation or expiration creates a compliance issue.
What happens if my Minnesota contractor bond is canceled or lapses?
If your surety company cancels your bond, they are required to give you and the relevant authority at least 30 days of advance written notice for DLI-filed bonds. If a replacement bond isn't filed before the cancellation takes effect, the DLI can suspend your contractor registration or license, and local municipalities can revoke your local contractor license until a new bond is on file. Bryant Surety Bonds monitors active bonds and will alert you well before a cancellation or expiration creates a compliance issue.
Do I need both a state contractor bond and a city contractor bond in Minnesota?
If the city where you work has its own bond requirement, you'll need both. State bonds filed with the DLI cover your state licensing obligations, while local city bonds are separate requirements set by each municipality. They are independent obligations. Some cities mirror the state bond amounts for certain trades, while others set their own amounts and obligees.
What is the Non-Minnesota Contractor Tax Bond?
It's a bond required by the Minnesota Department of Revenue for out-of-state contractors performing work on projects in Minnesota. It guarantees that the contractor pays all applicable Minnesota taxes on the project. The bond equals 8% of the contract value and applies to contracts exceeding $50,000. It is filed with the Department of Revenue, not the DLI, and is separate from any trade-specific license bond.
How long does a Minnesota contractor license bond stay valid?
State-level bonds filed with the DLI run for two years, aligned with most contractor license renewal periods. Local city contractor bonds typically run for one year. Your bond certificate will specify the term, and Bryant Surety Bonds sends renewal reminders before any bond is due to expire, so there's no gap in your coverage.
Can I get bonded if I have bad credit?
Yes, but a lower credit score means a higher premium. While most applicants with good credit pay 1–3% of the bond amount, those with lower scores typically pay between 5% and 15%, depending on the severity of the credit issues and the bond amount required. Bryant Surety Bonds works with applicants across all credit profiles and can help you find the most competitive available rate. Learn more through our Bad Credit Surety Bond Program.
Does applying for a Minnesota contractor license bond affect my credit score?
No. Bryant Surety Bonds uses a soft credit pull for all bond applications. Soft pulls do not appear on your credit report and have no impact on your score; you can check your eligibility and receive a quote without any effect on your credit. This is true regardless of the bond type or amount you're applying for in Minnesota.
