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Contractor Bonds

Maryland Contractor Bonds

Maryland Contractor Bond License Guide

Contractor bonds are required for any contractor wanting to become licensed in the state of Maryland. Though some bonds are required by the state, multiple cities and counties in Maryland have various licensing requirements for contractors and their desired projects.

Why are contractor bonds required in Maryland?

Contractor bonds ensure that the principal (contractor) will abide by all applicable rules and legislation outlining his or her classification-specific work. They also protect consumers from damages caused by negligent or faulty work and obligees (Maryland government entities requiring the bond) from any claims made by affected consumers.

Consumers can file a claim against the surety bond; if found to have validity, the surety (the company that financially backs the bond) will pay the claim up to the bond’s full amount. However, the principal is required to reimburse the surety in full for any money paid out.

Hauling Performance Bonds

Hauling performance contractors are required by the state of Maryland to post a surety bond. The one-year term bond amount ranges from $1,000 to $25,000 for a cost of $10 for every $1,000, or a $100 minimum; however, a 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront. This bond also ranges from $25,001 to $100,000 with the cost currently being underwritten, meaning the applicant’s credit history must be reviewed by a surety underwriter.

For more information on hauling performance bonds, visit the Maryland Department of Transportation State Highway Administration.

Home Improvement Contractor Bonds

Home improvement contractors must post a $20,000 or $100,000 surety bond for a two-year term to become licensed to work in the state of Maryland. Both amounts are underwritten, meaning a surety underwriter will check the applicant’s credit history to determine the cost.

Applicants for home improvement contractor license’s must submit the following requirements along with their application:

The application and $370 fee must be sent to the Maryland Home Improvement Commission.

Right-of-Way Performance Bonds

Right-of-way performance contractors are required by the state of Maryland to post a surety bond. The bond amount ranges from $1,000 to $1,000,000 for a one-year term. The applicant’s credit history must be reviewed by a surety underwriter as the cost of the bond is currently underwritten.

Visit the Bureau of Land Management for more information on right of way performance bonds.

Maryland town-specific contractor bonds

Many Maryland residents are required to post a surety bond with the city they work in. More information on specific cities and counties can be found below.

Baltimore City Master Electrician Contractor Bond

Baltimore City master electricians must post a $2,500 bond for a $100 premium. Though the bond has a one-year term, the cost may be prorated to match the time remaining until the bond’s end date.

Along with the surety bond, applicants are must meet these requirements to obtain a master electrician’s license:

  • Seven years' experience in all types of electrical equipment and apparatuses under the supervision of a master electrician; applicants who have taken formal courses or professional training in electrical installation may count that as up to three years' worth of experience

  • Pass the PSI Licensing Exam

For more information, visit the Maryland Department of Labor.

Calvert County Contractor Bonds

Calvert County, Maryland contractors must post a $1,000 bond for a $100 premium. Though the bond has a one-year term expiring on June 1, the cost may be prorated to match the time remaining until the bond’s end date.

To file an application, contractors must follow these requirements:

  • Submit character reference and proof of financial responsibility

  • Experience and training of applicant or of his or her associates

  • Construction superintendent or other principal employees

  • Process the application and pay a fee appointed by the Building Board in the Clerk’s Office located at:

175 Main Street

Prince Frederick, MD 20678

View Calvert County’s Application Process page for more information.

City of Frederick Utility/Irrigation Contractor Bond

City of Frederick, Maryland contractors must post a $5,000 bond with a $100 premium for a one-year term expiring on June 30. For an upfront purchase of multiple years, an additional 25% off can be added to the purchase.

Along with the application, contractors submit the following requirements:

  • Certificate of Insurance

  • Current photo ID of the applicant

More information can be found on the City of Frederick’s website.

City of Hagerstown Building Contractors and Carpenters Bonds

Building contractors and carpenters in the City of Hagerstown must post a $20,000 bond for a cost of $10 for every $1,000, or a $100 minimum for a one-year term expiring on December 31. The bond’s cost may be prorated to match the time remaining until the bond’s end date.

To obtain a City of Hagerstown building contractors and carpenters permit, applicants must:

  • Submit their license application

  • Pay the $125 application fee

  • List of experiences and qualifications, along with references

This application must be submitted to the Planning and Code Administration Department.

Frederick County Electrical Contractor Bond

Frederick County, Maryland contractors must post a $10,000 bond for a $100 premium. Though it is a one-year term, contractors can receive 25% off for an upfront purchase of multiple years on the bond.

Along with the surety bond, contractors must submit their license applications with the following requirements:

  • Pass the PSI Licensing Exam

  • Letter of Reciprocity from the county in Maryland the applicant originally received their electrician’s license (less than 30 days old)

  • $167 application fee

Completed applications must be mailed or hand delivered to the Frederick County Division of Planning and Permitting.

Frederick County Public Improvements Bond

Frederick County, Maryland contractors must post bonds ranging between $1,000 and $100,000. The applicant’s credit history must be reviewed by a surety underwriter as the cost of the bond is currently underwritten.

Along with the surety bond, contractors must submit their permit applications with the following requirements:

Applications must be completed and submitted electronically to the Frederick County Division of Planning and Permitting.

Frederick County Septic System Installer Bond

Frederick County septic system installers must post a bond ranging between $100 and $250,000. The cost of the bond is $5 for every $1,000, or a $100 minimum; however, a 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront.

Along with the surety bond, contractors must submit their permit applications with the following requirements:

  • Photo ID of the septic installer

  • $137 license fee paid to Frederick County

For more information, visit the Frederick County Division of Planning and Permitting website.

Prince George County Motor Vehicle Repair Facility Bond

Motor vehicle repair contractors in Prince George County must post a $2,000 surety bond. This bond has a $100 premium with a one-year term. For an upfront purchase of multiple years, an additional 25% off can be added to the purchase.

After obtaining the motor vehicle repair facility surety bond, applicants must submit their permit application along with the following:

Applications must be submitted electronically through the Prince George County Department of Permitting, Inspections and Enforcements.

Prince George County Site, Road Permit Labor, and Material Bond

Site/road contractors in Prince George County must post a surety bond ranging from $100 to $100,000. The applicant’s credit history must be reviewed by a surety underwriter as the cost of the bond is currently underwritten.

After obtaining the site, road permit labor, and material surety bond, applicants must submit their permit application electronically through the Prince George County Department of Permitting, Inspections and Enforcements.

Talbot County Plumber Bond

Plumbers in Talbot County must post a $10,000 surety bond. This bond has a $100 premium with a one-year term. For an upfront purchase of multiple years, an additional 25% off can be added to the purchase.

An application to obtain a Talbot County plumber permit must be submitted along with the following requirements:

  • List of journeyman applicants from the county

  • Copy of each current Maryland state plumbing licenses for master plumbers and journeyman applicants

  • Certificate of Insurance with a minimum of $300,000 bodily injury and $100,000 property damage

  • $75 master license fee and $10 journeyman fee

  • Copy of photo identification

For more information, visit Talbot County’s Permits and Inspection’s website.

To view other Maryland counties such as Frederick, Prince George, and Talbot, see our full list of Maryland contractor bonds and apply for a bond today!

Search all contractor bonds in Maryland

Over the years, our bonding experts have put together the most comprehensive surety bond library. Most of our contractor bonds can be purchased instantly online in only a few minutes.

Use the list below to browse all of our available contractor bonds in Maryland You can also try searching by bond amount, obligee, or bond name.