Vermont Contractor License Bond Requirements
Some types of Vermont contractors need to get a contractor license bond to operate legally.
General contractors in Vermont don’t have to meet a state-wide bonding requirement.
You may need to get a surety bond if you want to work as a contractor in the City of Burlington. It may be required by the Building Permit Office of the Department of Public Works.
Licensing requirements for different contractors vary across cities and municipalities. That’s why it’s important to check with your local authorities before you start the process.
Why Is This Bond Required?
The goal of Vermont contractor license bonds is to protect your clients. They guarantee you will follow relevant laws in your work as a licensed or registered contractor.
In case you don’t fulfill your obligations towards a client, they can file a claim against your surety bond. They can demand compensation of up to the penal sum of the bond that you have provided.
For more details about the way bonds work, you can review our extensive ‘What is a surety bond’ guide.
Have more questions? Don’t hesitate to call us at 866.450.3412.
What’s the Vermont Contractor License Bond Cost?
The cost of your bonding depends on the contractor license bond amount that the licensing authorities require you to post. It is called the premium.
For projects above $6,000, contractors in Burlington, VT have to provide a bond that equals the entire cost of the project.
Your surety formulates the price that you have to pay after examining your personal and business finances. It is a small percentage of the required amount.
Factors That Determine Your Bond Cost
Your personal credit score is the number one factor in your bond cost formation.
If your FICO score is 700 or higher, the rate that you can get can be as low as 1% of the required bond amount.
Your bond cost depends also on your:
- Personal and business finances
- Fixed and liquid assets
- Professional experience
Our surety bond cost guide provides an excellent overview of how your bond price is set.
How to Get Your Contractor License Bond
Ready to apply for your Vermont contractor license bond? Just click on the banner below to request a free quote. Afterward, you can buy the bond online straight away.
Have more questions about the contractor license bonds in Vermont? Our bonding experts are here to help. Just 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!