Why do I need a Georgia Contractor License Surety Bond?
A Contractor License Surety Bond is required for any individual or business that seeks to become a licensed residential contractor in the state of Georgia. The bond amount is $25,000 and must be submitted to the state prior to the issuance of the license.
The following are the different classifications for a residential contractor license as defined by the Georgia Statutes:
- Residential-Basic Contractor – Performs work relative to detached one-family and two-family residences, and one-family townhouses not over three stories in height and their accessory buildings and structures
- Residential-Light Commercial Contractor – Performs the work of a residential basic contractor and can include work related to multifamily and multiuse light commercial buildings and structures, along with their accessory buildings and structures, if less than four stories in height; less than 25,000 square feet in aggregate interior floor space; and are constructed of wood or light gauge metal frame, brick veneer, prefabricated, or manufactured typed of constructions; or are pre-engineered steel buildings not exceeding 50,000 square feet of interior floor space
How does a Georgia Contractor License Surety Bond work?
Georgia Contractor License Surety Bonds are filed for the benefit of consumers who may be damaged as a result of defective construction or other license violations by the contractor, and guarantees the contractor’s compliance with the conditions of any written contract or written warranty.
If an individual is harmed by the actions of the contractor, they may file a claim with the surety company for relief. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The contractor is then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the contractor.
What are the terms of the bond?
Georgia Contractor License Surety Bonds are filed with the Georgia State Licensing Board for Residential and General Contractors and are renewed on an annual basis by the surety company. The surety can cancel the bond at any time by giving 30-days written notice prior to the effective cancellation date to the state licensing board. The aggregate liability of the surety will not exceed the penal sum of the bond in any event.
How much does a Georgia Contractor License Surety Bond cost?
Georgia Contractor License Surety Bonds are subject to underwriting and the price you will pay depends on a review of your personal credit report. Pacific Surety is proud to offer a variety of approvals, regardless of credit, with rates starting at $125 annually for well-qualified applicants. It typically takes just a few hours from quote to issuance of the bond, and we have the ability to beat any competitors pricing. If you have any specific questions, feel free to contact our knowledgeable underwriting staff.
How do I get a Georgia Contractor License Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7837 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
Can I get a Georgia Contractor License Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Georgia Contractor License Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. To see what rate you will qualify for, please complete our quick online application for your free, no obligation price quote.
Can the premium for a Georgia Contractor License Surety Bond be financed?
Pacific Surety has an industry-leading premium finance program that gives our clients the ability to purchase a bond when the upfront costs might be prohibitive to them. Applicants who choose this option will pay percentage of their premium as a down payment, and the balance of the premium will be paid in four (4) monthly installments. Please contact our staff for additional information regarding our finance program.
What do I need to apply for a Georgia Contractor license?
Anyone who wishes to become a licensed contractor must submit a completed application to the Georgia State Licensing Board for Residential and General Contractors and provide the following:
- Nonrefundable $200 Application Fee
- At Least Two Years of Proven Experience Working as or in the Employment of a Residential Contractor
- Successful Completion of at Least Two Projects Falling Within the Residential-Basic Category in the Two-Year Immediately Preceding Application
- Copy of a Secure and Verifiable Document (SVD)
- General Liability Insurance (Minimum Amount of $300,000 per Occurrence)
- Surety Bond