Delaware – Newark Contractor Bond
AmeriPro Surety Bonds | 844-589-9732
Newark, Delaware Contractor Licensing
The city of Newark, Delaware contractor surety bond amount required will depend on the category of your contracting profession, and the cost of construction in the city. The surety bond is a requirement of the Code Enforcement Division of Newark.
The breakdown is as follows by contracting specialty:
Minor Renovation Contractors –
- Up to $24,999.99 – $10,000 surety bond;
- $25,000 – $75,999.99 – $25,000 surety bond
Limited Subcontractors (HVAC, fire, plumbing, and mechanical)
- Less than $1 million – $50,000 surety bond;
- $1 million and above – $200,000 surety bond;
- $1.00 to $99,999.99 – $50,000 surety bond;
- $100,000 to $249,999.99 – $75,000 surety bond;
- $250,000 to $499,999.99 – $100,000 surety bond;
Limited General Contractor
- $500k to $999,999.99 – $150,000 surety bond;
Unlimited General Contractor
- $1 million and more – $200,000 surety bond
Qualifying and the Premium
Applicants for any Newark, Delaware contractor bond up to and including $50,000 amount, are approved automatically without a credit check. The application can be taken directly from you over the phone.
The surety bond premium amounts will be as follows:
- $10,000 surety bond – $100 annual premium;
- $25,000 surety bond – $125 annual premium;
- $50,000 surety bond – $250 annual premium.
For amounts greater than $50,000, in addition to a signed application, in addition to an application which you will need to have signed and witnessed, there is also a credit check.
Good credit will be required, and upon approval from the underwriters, the premium breakdown is as follows:
- $75,000 surety bond amount – $375 annual premium;
- $100,000 surety bond amount – $500 annual premium;
- $150,000 surety bond amount – $750 annual premium;
- $200,000 surety bond amount – $1000 annual premium.
Surety Bond Term; Premium Prepayment Options
Your Newark contractor bond is good for one year from the date of issuance, and thereafter your surety bond and the premium renew.
For Newark contractor bonds across all categories and amounts, our agency offers you the option to prepay your premium up to 3 years. Prepayment of the premium offers you a savings over annual renewals; you also, of course lengthen the time between premium renewals.
Purpose of Your Surety Bond Requirement
Four reasons are given for your surety bond requirement. These are:
- A financial guarantee which ensures your compliance with the Newark Municipal Code 7;
- To correct any and all violations of the said Code;
- The surety bond is an indemnification and holding harmless the city of Newark and its employees, representatives, and the like for losses, damages and expenses of any kind that may be recovered for it or by them;
- That you will pay all penalties and fees assessed by the City of Newark if you fail to pay within 30 days after they are due.
The wording of your surety bond goes into more detail.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide contractor licensing surety bonds throughout Delaware and wherever required nationwide.
Our agency is also a provider of license and permit, court, and probate surety bonds in all 50 states.
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