Why Is This Bond Required?

From my experience, this bond is essential for the following reasons:

• Ensures Compliance – Guarantees that contractors follow Kansas state and municipal regulations, including building codes and safety standards.

• Protects Clients – Provides financial recourse for property owners or project stakeholders harmed by contractor negligence, fraud, or non-performance.

• Upholds Accountability – Holds contractors responsible for completing projects as outlined in their contracts.

Without this bond, contractors may not be able to obtain or renew their licenses to operate legally in Kansas.

Who Needs This Bond?

This bond is typically required for:

• General Contractors – Engaged in residential, commercial, or municipal construction projects.

• Trade Contractors – Electricians, plumbers, HVAC specialists, and other licensed professionals.

• Specialty Contractors – Roofers, landscapers, and other contractors performing specific services.

If your work requires a contractor license in Kansas, this bond is often a mandatory step in the licensing process.

How Much Does a Kansas Contractor License with Performance Guarantee Bond Cost?

The bond amount varies depending on the municipality or state’s requirements and the type of projects you handle. The cost (premium) is a small percentage of the total bond amount.

Typical Cost Range:

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

  • For example:

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

    • A $50,000 bond may cost $500 to $2,500 per year.

Factors That Affect Bond Costs:

1. Bond Amount Required – Larger projects or municipal requirements may require higher bond amounts.

2. Credit Score – Higher credit scores usually result in lower premiums.

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

4. Financial Stability – Contractors with strong financials and low risk often pay less.

Even contractors with less-than-perfect credit can secure bonding options tailored to their needs.

How to Get a Kansas Contractor License with Performance Guarantee Bond

From my experience, obtaining this bond is straightforward when you follow these steps:

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

2. Apply for the Bond
   Submit a short application with your business, financial, and credit details.

3. Get a Quote
   The premium will be calculated based on your credit, financial profile, and project scope.

4. Purchase the Bond
   Pay the premium, and your bond certificate will be issued.

5. File the Bond
   Submit the bond to the appropriate state or municipal office as part of your licensing process.

6. Renew Annually
   Ensure your bond is renewed each year to maintain continuous coverage and licensing compliance.