Delaware Contractor License Bond6% of Contract Value

It depends on residency. Non-resident contractors must post a bond equal to 6% of contract/subcontract price for any single contract of $20,000 or more, or aggregate contracts totaling $20,000+ in a calendar year. Delaware resident contractors have no state-level bond requirement, though some municipalities like Wilmington require bonds.

Delaware non-resident contractor bonds cost 1-5% of the bond amount annually, depending on credit. For example, a $100,000 contract requires a $6,000 bond (6%). With good credit, annual premium would be $150-$300 (2.5-5%). Larger contracts or poor credit may require collateral or higher rates.

Non-resident contractors must file the 6% bond with the Delaware Division of Revenue BEFORE construction begins. Failing to file before starting work is a misdemeanor with fines up to $3,000 and/or imprisonment up to 6 months. The bond must remain in force continuously - any lapse can result in license revocation.

Wilmington requires bonds from $10,000-$200,000 depending on license class: Class A, B, C, U contractors and master HVACR/plumbers all need bonds. Newark and New Castle County have varying requirements by contractor type. Always verify with local building departments in addition to state requirements.

To work in Delaware: (1) Register with Division of Revenue ($30 New Business Registration), (2) Pay $75 annual licensing fee, (3) Non-residents: file 6% bond for contracts $20,000+, (4) Check local requirements (Wilmington, Newark, New Castle County may require additional bonds), (5) Obtain required insurance. Bond must be filed before starting any covered work.

Delaware treats unlicensed contracting as a misdemeanor. Penalties include fines up to $3,000 and/or imprisonment up to 6 months. Non-residents who fail to file the required bond face these same penalties. Additionally, unlicensed contractors may have difficulty collecting payment and face civil liability.