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.
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:
- $10,000 bond for South Dakota electrical contractors and Class B electricians and City of Sioux Falls master plumber contractors
- $20,000 bond for City of Sioux Falls contractors - residential building
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
|South Dakota electrical contractors and Class B electricians and City of Sioux Falls master plumber contractors
|City of Sioux Falls residential building contractors
Get Your Contractor License Bond
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Just click on the banner below to obtain a free quote. Then you can buy your bond online.
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!