Why Is a Compliance Contractor Bond Required?

From my experience, this bond serves several essential purposes:

• Ensures Compliance – Guarantees contractors follow Kansas laws, safety regulations, and building codes.

• Protects the Public – Provides financial protection for damages caused by unethical or non-compliant contractor behavior.

• Demonstrates Professionalism – Signals to clients and regulators that the contractor is financially accountable and trustworthy.

The continuation certificate ensures uninterrupted bond coverage for contractors who renew their licenses or permits each year.

Who Needs This Bond?

This bond is typically required for:

• General Contractors – Performing residential, commercial, or public projects.

• Trade-Specific Contractors – Electricians, plumbers, HVAC professionals, and other licensed trades.

• Construction & Repair Contractors – Working on projects requiring permits or regulatory oversight.

If you are a contractor in Kansas required to renew your license or permit annually, this bond with a continuation certificate may be mandatory.

How Much Does a Kansas Compliance Contractor Bond Cost?

The bond amount and premium vary based on the contractor’s obligations and local requirements.

Typical Cost Range:

• Premiums typically range from 1% to 5% of the bond amount annually.

  • For example, a $10,000 bond may cost between $100 and $500 per year.

Factors That Affect Bond Costs:

1. Bond Amount Required – Determined by the municipality or licensing authority.

2. Credit Score – Contractors with higher credit scores typically pay lower premiums.

3. Business Experience – Established contractors with proven records may qualify for better rates.

4. Financial Stability – A strong financial profile reduces perceived risk, leading to lower costs.

How to Obtain and Renew a Kansas Compliance Contractor Bond with a Continuation Certificate

I’ve helped many contractors with this process, and it’s straightforward when you follow these steps:

1. Verify Your Bond Requirements
   Confirm the required bond amount and continuation certificate process with your local licensing authority.

2. Apply for the Bond
   Submit an application with details about your business, financials, and credit history.

3. Get a Quote
   The surety will calculate your premium based on your financial profile.

4. Purchase the Bond
   Pay the premium to activate your bond and receive your bond certificate.

5. Renew with a Continuation Certificate
   Each year, your surety will issue a continuation certificate to extend the bond's coverage upon renewal. File the continuation certificate with your local licensing authority to maintain compliance.