Wyoming Contractor License Bond Requirements
Several municipalities in the state of Wyoming require applicants for a contractor license to get a contractor license bond as a licensing requirement. These municipalities include the Town of Jackson, the City of Gillette, the City of Sheridan, and the City of Lander.
Non-resident (operating in the state for less than a year) general contractors in the state must also post a bond. This is required by the state Department of Revenue
The amounts of the required bonds vary depending on the type of license you are applying for. Most of them are between $5,000 and $20,000. They are required of commercial, residential, plumbing, electrical, and a host of other contractors.
For a more detailed description of the different bonds in the state, see the sections below!
Why Is This Bond Required?
Surety bonds are a form of guarantee that the bonded contractor will comply with local and state regulations when performing work. Such regulations include the cities’ Construction Code and the Wyoming Statutes.
If a contractor violates any of these and causes harm or losses to an individual, that person can file a claim against the bond. The surety that backs the bond must then investigate the situation to determine whether to extend compensation to the claimant.
Compensation extended by a surety may be as much as the full penal sum of the bond but not more.
If this is your first time getting bonded, see our ‘What is a surety bond’ guide for a full explanation of how bonds work and why they are required!
In the sections below you can learn more about the cost of getting a Wyoming contractor license bond, and how to apply.
Call us at 866.450.3412 anytime if you want to consult with one of our bond experts personally.
What’s The Cost of The Wyoming Contractor License Bond?
Here are the bonds that are required of contractors in the state:
- Applicants for any type of contractor license in the City of Gillette must submit a $5,000 bond.
- Applicants for an electrical contractor, plumbing contractor, building contractor, refrigeration repair work, or HVAC contractor license in the City of Lander must post a $10,000 bond.
- Applicants for any type of contractor license in the Town of Jackson must post a $10,000 bond.
- Applicants for a contractor license in the City of Sheridan must submit a $10,000 bond Plumbing/HVAC license or a Type III contractor license and a $25,000 bond for a commercial contractor or residential contractor license.
- Non-resident general contractors in Wyoming must post a sales and use tax bond with the Wyoming Department of Revenue. The bond amount is determined on a case-by-case basis.
The amount of your bond is different from its cost. The cost equal to a percentage of the total amount and is determined by your surety based on several factors.
Factors That Determine Your Bond Cost
An applicant’s personal credit score is the primary factor that sureties take into account. The higher an applicant’s credit score, the lower the cost of their bond will be.
For example, if you have a credit score of at least 700 FICO or higher, you will likely get a rate on your bond as low as 1% of its full amount. Applicants with a score lower than that are typically bonded at a rate of up to 3%. Those with an even lower, or so-called bad credit score, can expect to get bonded at a rate of 3%-5%.
In addition to your credit score, the surety will likely also want to review some of the following information:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
If you’d like to know more about how the bond cost is determined, see our detailed surety bond cost guide!
For an estimate of the cost of your bond, based on credit score, see the table below!
|Wyoming Contractor License Bond Cost Based on Credit Score
|City of Sheridan commercial contractor & residential contractor
|City of Sheridan Plumbing/HVAC, City of Lander, Town of Jackson
|City of Gillette
How to Get Your Wyoming Contractor License Bond
To apply for your bond, click on the banner below. Complete our brief bond application form, and we will shortly provide you with a free quote on your bond, along with further instructions about completing the bonding process.
For more information about the bonding requirements for contractors in Wyoming, call us at 866.450.3412!