Starting or operating a contracting business in North Dakota requires compliance with state registration rules and, in some cases, local bonding requirements. While North Dakota does not impose a universal statewide contractor license bond for all trades, certain specialized contractors and municipalities require surety bonds before licensing or permit approval.
A contractor license bond serves as a financial guarantee. It ensures compliance with applicable statutes, local ordinances, and contractual obligations. If a contractor fails to meet these requirements, harmed parties may file a claim against the bond.
North Dakota Contractor License Bond Requirements
In North Dakota, contractor bonding requirements vary depending on the type of work and the jurisdiction where the work is performed.
State-Level Contractor Requirements
All contractors must register with the North Dakota Secretary of State. While most contractor registrations do not require a statewide bond, certain regulated trades, such as water well contractors, must file a specific surety bond with the appropriate state agency.
Municipal Contractor Bonds
Several North Dakota cities require contractor license or permit bonds before issuing local licenses. These bonds are commonly required for:
- General contractors
- Excavation contractors
- Plumbing contractors
- Sidewalk and concrete contractors
- Water well contractors
Municipal bonds are typically issued for one-year terms and must remain active to maintain licensing compliance.
Bryant Surety Bonds helps determine exactly which bond applies to your classification and municipality, ensuring your bond meets local requirements.
How Much Does a North Dakota Contractor Bond Cost?
The cost of your bond, also known as your bond premium, is equal to a fraction of the amount you need to get bonded for. The premium is determined by the surety on the basis of several financial factors.
An applicant's personal credit score has the strongest influence on their bond premium. The higher your score, the cheaper it is for you to get bonded. Typically, applicants with high scores can expect to get some of the lowest rates on their bonds, somewhere between 1% and 3% of their total amount.
Apart from your credit score, the surety company may also want to review your:
- Personal and business financial statements
- Fixed and liquid assets
- Industry experience
For an overview of the various bond types in North Dakota, see the table below:
| Bond Type | Bond Amount | Bond Cost |
|---|---|---|
| State-Wide Contractor Bonds | ||
| Water Well Contractor Installing Pitless Units/Pumps Bond | $2,000 | Starts at $100 |
| Water Well Contractor Installing Monitoring Wells Bond | $2,000 | Starts at $100 |
| Water Well Contractor Constructing Water Wells Bond | $15,000 | Starts at $150 |
| Municipality-Specific Contractor Bonds | ||
| Grand Forks Contractor Bond | $5,000 | Starts at $100 |
| City of Williston Excavation Contractor Bond | $10,000 | Starts at $100 |
| City of West Fargo Contractor Bond | $5,000 | Starts at $100 |
| City of Dickinson Plumbing License Bond | $1,000 | Starts at $100 |
| City of Fargo Sidewalk Builders Bond | $25,000 | Starts at $250 |
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Get a free exact quote Get another estimateCan I apply for a contractor license bond in North Dakota if I have bad credit?
Yes, applicants with low credit can also get bonded. Such applicants will usually be offered higher rates than those with better credit. This is because sureties perceive a greater likelihood of claims when issuing bonds to such applicants.
Yet, even if you are offered a high rate the first time around, you can improve your premium by raising your credit score. The more you increase your score, the lower your premium will be over time.
To learn more about getting bonded with less-than-ideal credit, check out our Bad Credit Program page.
North Dakota Contract Bonds
In addition to contractor license bonds, contractors in North Dakota may be required to obtain project-specific contract bonds, such as bid bonds, performance bonds, and payment bonds. These bonds are commonly required for public works projects and larger private construction contracts.
Unlike a contractor license bond, which is tied to regulatory compliance, contract bonds apply to a specific project and guarantee completion of the work and payment to subcontractors and suppliers.
How to Get a North Dakota Contractor License Bond
Getting bonded in North Dakota is fast and straightforward. In most cases, you can complete the entire process online in just a few simple steps:
1. Complete a Short Online Application
Provide your business information, including your company name, contact details, and the specific bond required.
2. Receive Your Personalized Quote
After reviewing your submission, we provide a competitive premium quote, often the same day. There is no obligation to proceed.
3. Secure and File Your Bond
Once you accept the quote and submit payment, your official bond is ready to be issued.
Most North Dakota contractor bonds are processed quickly, helping you avoid delays in licensing or permit approval.
To maintain compliance, your bond must remain active for the required term. Bryant Surety Bonds provides renewal reminders in advance to keep you licensed without interruption.
How to Get a Contractor License in North Dakota
Contractors in North Dakota must register through the North Dakota Secretary of State. While requirements may vary depending on your trade and location, the general process includes:
- Registering your business name (if operating as a sole proprietor or partnership)
- Completing the contractor application through the state’s FirstStop portal
- Providing proof of general liability insurance
- Verifying compliance with Workforce Safety & Insurance (WSI) requirements
- Paying the applicable filing fee
- Obtaining any additional local licenses or permits required for your trade
Municipalities may impose additional bonding or licensing steps beyond state registration.
Fargo Sidewalk Builder License Requirements
The City of Fargo requires sidewalk builders to obtain a local license. Applicants must:
- Provide a certificate of liability insurance
- Hold an active North Dakota contractor registration
- File a surety bond
- Pay the required license fee
Grand Forks Contractor License Requirements
In Grand Forks, contractors must apply based on their classification, such as building, mechanical, plumbing, excavation, sign installation, moving, or electrical.
Applicants generally must:
- Hold an active state contractor registration
- File a contractor bond in the required amount (electrical contractors may have separate requirements)
- Pay the applicable city license fee
North Dakota Water Well Contractor License
Water well contractors are regulated by the North Dakota State Board of Water Well Contractors.
To obtain licensure, applicants must:
- Submit a completed application
- File the required surety bond
- Demonstrate required experience or approved training
- Pass the licensing examination and pay applicable fees
For more information on how to get licensed as a contractor, check out our dedicated North Dakota Contractor License Guide.
FAQs
Do all contractors in North Dakota need a license bond?
No. North Dakota does not require a universal statewide contractor bond for all trades. However, certain regulated contractors — such as water well contractors — and many municipalities require bonds before issuing a local license or permit.
Are contractor bonds required for private construction projects?
Contractor license bonds are generally required for licensing compliance. However, private project owners may require contract bonds — such as performance or payment bonds — depending on the scope of work.
How long does a North Dakota contractor bond last?
Most contractor license bonds are issued for a one-year term and must be renewed to maintain licensing compliance.
Do municipal contractor bonds replace state registration?
No. Municipal contractor bonds are separate from state registration. Contractors must first register with the Secretary of State and then meet any additional city licensing and bonding requirements.
