Who Needs an Indiana General Contractor Bond?

While Indiana does not have a statewide bonding requirement for general contractors, many local municipalities and counties require it for licensing. You may need this bond if you:

• Work as a general contractor overseeing construction projects

• Perform residential or commercial building work

• Handle structural repairs, remodeling, or renovations

• Need permits for major construction projects

Cities like Indianapolis, Fort Wayne, Evansville, and South Bend often have their own bonding requirements, so it’s important to check with your local licensing board to ensure compliance.

How Does the Indiana General Contractor Bond Work?

This bond provides financial protection to clients and the public by ensuring that contractors follow local regulations and fulfill their contractual obligations. Here’s how it works:

1. You obtain the bond as part of your general contractor licensing process.

2. The bond acts as a safeguard ensuring you adhere to building codes and laws.

3. If a claim is filed, such as for substandard work, abandoned projects, or violations of contract terms, the surety company may pay damages up to the bond amount. However, you are ultimately responsible for repaying any claims covered by the surety.

Cost of an Indiana General Contractor Bond

The cost of this bond depends on:

• The required bond amount, which varies by city and county

• Your credit score and financial history

• The surety company’s underwriting criteria

In general, qualified applicants pay 1% to 5% of the total bond amount. If you have strong financials and credit, you’ll likely receive a lower rate. If your credit history has challenges, you may still qualify for a bond but at a slightly higher percentage.

How to Obtain an Indiana General Contractor Bond

Getting your bond is a simple and fast process:

1. Check local requirements – Verify with your city or county licensing board to determine the bond amount and conditions.

2. Request a quote – Provide basic business and financial details to get a pricing estimate.

3. Complete the application – Submit the required paperwork and supporting documents.

4. Receive your bond – Once approved, you’ll get the bond to file with your licensing authority.