Why Is This Bond Required?

From my experience, the bond serves several important purposes:

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

• Protects the Public – Provides financial recourse for clients and property owners harmed by contractor negligence or misconduct.

• Maintains Accountability – Holds contractors responsible for fulfilling their obligations, ensuring quality work and legal compliance.

The requirement to issue a new bond at renewal ensures that the contractor's bond obligations are reevaluated annually, providing added security for clients and municipalities.

Who Needs This Bond?

This bond is typically required for:

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

• Specialized Contractors – Electricians, plumbers, HVAC professionals, and other trade-specific contractors.

• Repair & Renovation Contractors – Working on projects that require city or state permits.

If your license or permit is subject to annual renewal in Kansas, you will need to secure a new bond at renewal to remain compliant.

How Much Does a Kansas Compliance Contractor Bond Cost?

The bond amount is determined by the licensing authority or municipality, but the cost (premium) you pay is a small percentage of the bond amount.

Typical Cost Range:

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

  • For example:

    • A $10,000 bond may cost $100 to $500 per year.

    • A $25,000 bond may cost $250 to $1,250 per year.

Factors That Affect Bond Cost:

1. Credit Score – Higher credit scores result in lower premiums.

2. Business Experience – Established contractors with good track records qualify for better rates.

3. Financial Stability – A strong financial profile reduces perceived risk and lowers costs.

4. Bond Amount – Larger bond amounts will have higher premiums.

Even if your credit isn’t perfect, bonding options are still available to meet your needs.

How to Get a Kansas Compliance Contractor Bond with New Bond at Renewal

The process for obtaining this bond is simple, and I’ve found that contractors who start early avoid delays. Here are the steps:

1. Verify Your Bond Requirements
   Contact the Kansas licensing authority or your local municipality to confirm the bond amount and renewal conditions.

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

3. Receive a Quote
   Your premium will be calculated based on your credit score, financials, and experience.

4. Purchase the Bond
   Once approved, pay the premium, and receive your bond certificate.

5. Renew Annually with a New Bond
   Each year, submit a new application for the bond to maintain compliance with licensing or permit renewal requirements.