The majority of states have made licenses mandatory for roofing contractors to perform roofing services. So, if you are a roofing contractor in Pepperell MA, you need to have a roofer certificate bond. But remember, not all the states need a roofing contractor bonding and licensing. The contractors should ensure to obtain a bond to cater to county criteria. It is difficult to get an idea of how the bonding works even for individuals who are well aware of bonding. Therefore, it is necessary to read the basics before getting a contractor licensing and bond.
The bonds serve as strong proof for customers. When you have a bond, customers would feel safe to obtain services from you. Being bonded and licensed is one of the major benefits for contractors. It helps the contractors to survive in the market for a long time.
Where should you post a license bond?
Roofing bonding and licensing are not required nationwide. Each state has its own set of rules and regulations that monitors roofing specialists. In most cases, the state contractor certificate boards are responsible for the licensing procedure. They have included roofing under the specialty contractor licenses. It is possible to obtain by following the guidelines. Moreover, countries and towns have their licensing laws for contractors that function in their region.
If you wish to function in Arizona, Illinois, Oklahoma, Minnesota, Texas, or California, you need to get a roofing contractor bond and license. In Illinois, the cost of the bond is $10,000 and in Oklahoma, it is $5000. Minnesota and California roofers need to get a $15,000 bond. In Texas, the roofers should pay a lump sum amount that is $100,000 to obtain the bond.
County and town licensing differ across the country. It is always recommended to contact your local authorities and officials about the exact bond amounts and requirements. But in certain cases, you have to get a general contractor bonding and licensing and some licensing bodies ask for a special roofing bond and license.
How does the surety bond function?
Roofing license bonds or contractor license bonds are needed from several construction experts. It is the agreement between the licensing authority and your roofing business. It acts as a surety. When a license is an issue for your roofing contractor business, it means, the bond provider guarantees and supports your contractors financially.
If you wish to get bonded, it is necessary to pay a premium for the bond. It is usually a small part of the bond sum that you need to get. The premium is calculated depending upon your financial status. The bond provider analyzes your credit score, business finances, and also liquidity and assets. It is how they determine whether the profile is risky or not for the bond. If the financial status of the contractor looks good, the bond premium would range approximately from 1% to 5%. For example, if it is a $15,000 bond, then the bond price would be approximately $150 to $750. If you wish to reduce the bond premium, then you need to improve financials and credit score.