South Dakota Contractor License Bond Requirements

For some types of South Dakota contractor licenses, you need to post a contractor license bond.

General contractors don’t have to meet a state bond requirement.

The South Dakota Electrical Commission requires electrical contractors and Class B electricians to get bonded on the state level. Some City of Sioux Falls construction companies also need a license bond. These include residential building contractors and master plumber contractors.

Before you start your licensing process, make sure to check the exact bonding requirements of the license authorities.

Why Is This Bond Required?

The purpose of the South Dakota contractor license bond is to guarantee that you will follow all relevant laws in your work as a licensed contractor. That’s how it protects your customers.

A client who has suffered damages due to any illegal actions on your side can demand reimbursement through a bond claim. The penal sum of the bond is the largest compensation they can seek.

Need more details about the bonding process? Our ‘What is a surety bond’ guide is your go-to resource that offers an extensive overview.

Start your surety bond application today! Why us?
  • Quick turnaround - just 1-2 business days
  • Tailor-made advice on building a strong application
  • Exclusive bad credit programs

Have more questions? Don’t hesitate to reach us at 866.450.3412 to speak with our bonding specialists.

What’s the South Dakota Contractor License Bond Cost?

The cost of your contractor license bond is based on the bond amount that your licensing authorities require.

The bond amounts for South Dakota contractors are:

You need to pay a fraction of the required amount, which is called the bond premium. It depends on your personal and business finances.

Factors That Determine Your Bond Cost

Your surety considers your personal credit score as the most important factor in formulating your bond cost. If you have a FICO score of 700 or higher, your rate will be as low as 1% of the required bond amount.

The rest of the indicators that play a role include:

  • Personal and business financial statements
  • Fixed and liquid assets you may have
  • Professional experience

You can refer to our surety bond cost guide for a full overview of how your bond cost is determined.

You can also consult an estimate of your contractor license bond cost based on your credit score in the table below.

South Dakota Contractor License Bond Cost Based on Credit Score
License type Bond Amount Credit Score
Above 700 650-699 600-649 Below 599
South Dakota electrical contractors and Class B electricians and City of Sioux Falls master plumber contractors $10,000 $100-$200 $150-$300 $200-$400 $300-$500
City of Sioux Falls residential building contractors $20,000 $200-$400 $300-$600 $400-$800 $600-$1000

Get Your Contractor License Bond

Ready to apply for your South Dakota contractor license bond?

Just click on the banner below to obtain a free quote. Then you can buy your bond online.

Start your surety bond application today! Why us?
  • The lowest possible rates
  • A 100% money-back guarantee
  • Access to specialty programs, not available to small agencies

If you need more information about South Dakota contractor license bonds, you can call us at 866.450.3412.

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!

About us:
Bryant Surety Bonds, Inc. is a surety bond agency based in Pennsylvania. Licensed in all 50 states and with access to over 20 T-listed, A-Rated bonding companies, we have the contacts, expertise, and top service to provide you with a hassle-free experience, all while offering competitive rates for your surety bond.