City of Omaha Contractor Bond - Overview
Contractors across Nebraska are not required to post a surety bond to obtain their license, but the City of Omaha is an exception.
Omaha contractors need to maintain a $10,000 contractor license bond to ensure that their work conforms with city rules and regulations, and to serve as an extra layer of protection for the public. If anyone suffers damage or loss the contractor’s surety bond can provide financial compensation.
Currently, Omaha contractors who need a bond include the following classifications:
- Class A (all structures)
- Class B (structures up to four stories)
- Class C (home and duplex buildings)
- Class D (residential modeling)
- Class E (roofing, siding, decks, windows)
Read on to find out more about these bonds, such as how to calculate your costs and what to expect from the application process.
Omaha Contractor Bond Cost
The cost of this bond is not $10,000– this amount is the bond’s penal sum, i.e. the maximum liability of the surety. If there’s a claim against you, the surety can cover damages for up to $10,000.
To get bonded, contractors pay a premium which is determined after an evaluation of their credit report. The most important item in your report is your credit score. Here’s what premiums you can expect based on what your score is.
|State and Bond Name||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|City of Omaha Contractor Bond||$10,000||$100-$200||$150-$300||$200-$400||$300-$500|
Consult our surety bond cost guide for more information and some useful cost-saving tips.
Nebraska Non-Resident Contractors
Contractors who do not reside in Nebraska will need to post an additional bond called a non-resident contractor bond. This is put in place to ensure that they pay all due taxes and fees to the state.
The bond needs to be filed with the Department of Revenue and must be for the following amounts:
- 10% of the contract price for projects up to $100,000
- 15% for contracts in excess of $100,000 “computed to the next higher one thousand dollars ($1,000).”
Projects with a value of $10,000 or less do not require that non-resident contractors post a bond.
Getting Bonded with Bad Credit
As you can see from the table, having a low credit score can raise your premium up to 5% of the total bond amount. However, thanks to our Bad Credit Program you can get bonded regardless of your credit score. The only two reasons we see rejected applications are open bankruptcies and/or late child support payments.
If you’re worried about paying a high premium, our agents can help you strengthen your application in such a way as to ensure that the surety will quote you at the lowest possible rate. To do that, you may be required to submit additional documents, such as personal and business financial statements. If you have liquid assets, this can help too.
Apply and Get Your Contractor Bond Today!
You needn’t worry about the application process– it’s quite simple and straightforward. Start by submitting our one-page online application.
Next, one of our agents will be in touch with you. They’ll give you a free bond quote, and can answer any questions you have. We take care of most of the paperwork– all you have to do is sign an indemnity agreement with the bonding company and pay for your quote.
In normal circumstances, we can mail your bond in as little as one to two business days. You can also request copies via fax or email. If anything is unclear at any part of the application process, don’t hesitate to contact us at 866.450.3412.
Licensing Requirements for City of Omaha Contractors
To work as a contractor in the City of Omaha, you need to be licensed– not only on a state level, but on a city level too. You will have to choose a contractor classification, get the applicable level of insurance coverage, and successfully pass an examination.
There are some additional requirements, which you should ask your local authority about, since they differ based on the license you wish to apply for.