Montana Contractor License BondWater Well: $4,000-$25,000

Montana does not require a general contractor bond at the state level. However, water well contractors must maintain a surety bond under MCA Section 37-43-306. General contractors must register with the state ($70 fee) but no bond is needed for the registration itself. Some municipalities require local contractor bonds.

Water well contractors must maintain a surety bond as a condition of licensure through the Montana Board of Water Well Contractors. Under current rules, individual contractors need a $4,000 bond. Firms with more than two licensed contractors can submit one $10,000 bond. House Bill 59 (2025) increases both amounts to $25,000.

Montana House Bill 59 (2025) increases water well contractor bond requirements from $4,000 to $25,000 for individuals and from $10,000 to $25,000 for firms. This significant increase reflects updated consumer protection standards. Check with the Board of Water Well Contractors for the effective date applicable to your license renewal.

No. A bond is required only for contractor licenses, not driller licenses. If you hold a driller's license without a contractor license, you do not need a surety bond. However, if you are both a driller and a contractor, you need the contractor bond.

Several Montana cities require local contractor bonds: Missoula, Billings, Great Falls, and Whitefish all have municipal licensing programs with bond requirements ranging from $3,000 to $20,000 depending on the city and trade. Check with your local building department for specific requirements.

The current $4,000 bond costs $40-$200 per year depending on credit. When HB 59 takes effect and the bond increases to $25,000, expect costs of $250-$1,250 per year. Cash bonds, certificates of deposit, or cashier's checks are accepted as alternatives to surety bonds.