Michigan Contractor Bond License Guide
Michigan requires contractors to obtain a contractor bond to become licensed. The amount for these bonds varies depending on the type of contractor, location, and project. Some of these bonds can be issued instantly online for a set premium or are prorated for the bond term’s end date.
Why are contractor bonds required in Michigan?
Multiple counties and cities require contractors in Michigan to post surety bonds prior to starting work. These bonds ensure the principal (contractor) will abide by all applicable rules and legislation outlining the classification-specific work, in addition to protecting consumers from damages caused by negligent or faulty work. Obligees (government entities requiring the bond) enforce the legal language on the bond form that places liability on the principal.
Affected contractors 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.
Security Alarm Contractor Bond
Security alarm contractors are required by the state of Michigan to post a surety bond. The bond amount is currently $25,000 with a $250 premium for a one-year term. Along with the surety bond, contractors must also submit an application with additional requirements to become licensed to work within the state:
Five reference statements
Two quality photo identifications of the applicant
Certificate of incorporation of business, if applicable
Approval from city/county chief/sheriff and county prosecuting attorney
Michigan city-specific contractor bonds
Many Michigan contractors are required to post a surety bond with the city or county they work in. More information on city and county-specific requirements can be found below.
Bloomfield Township Sewer Contractor Bond
Bloomfield Township sewer contractors must post a $10,000 bond for a one-year term, expiring December 1. The cost of the bond is currently $5 for every $1,000, or a $100 minimum; however, it may be prorated based on the time remaining in the term. Along with the surety bond, contractors are required to submit a permit application to work within Bloomfield Township.
City of Eastpointe Sewer Contractor Bond
A $25,000 bond is required of sewer contractors in the City of Eastpointe. Sewer contractor bonds can be purchased instantly online for a one-year term for a $125 premium. A 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront. Along with the permit application, contractors are required to include their job location, sewer plans and any applicable fees.
City of Detroit Wrecking Contractor Bond
A $50,000 bond is required of contractors in the City of Detroit to become registered to work. Wrecking contractor bonds can be purchased instantly online for a $250 premium for a one-year term, expiring December 31. The cost of the bond may be prorated based on the time remaining in the term. Along with the surety bond, applicants must submit a wrecking license application with the following requirements:
Front and back photocopy of their driver’s license
Recent photograph (passport style)
Previous permits with photographic evidence of work
$329 application fee
Passing score of at least 75% on the Wrecking Contractor’s written exam; $86 fee
$302 license fee
City of Southfield Contractor Bond
A $5,000 surety bond is required of contractors by the City of Southfield. Contractor bond instantly online for a one-year term for a $100 premium. A 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront. Contractors will also to include a copy of their state licenses, driver’s license, and the pertaining registration fee in their the City of Southfield contractor registration application.
Clinton Township Contractor Bond
Contractors the Clinton Township must post a $5,000 surety bond to become registered to work. This bond can be purchased instantly online for $100 for a one-year term. A 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront. Applicants must have a copy of their driver’s license and applicable trade licenses when applying for a permit.
Genesee Residential Sewage Disposal Contractor
Sewage disposal contractors are required to post a $35,000 surety bond to register with Genesee County. The cost of this bond is currently credit-based with a 1.5% minimum rate for a one-year term, expiring December 1. To become registered, applicants must submit a permit application, along with a description of the desired property and its address, and a fee of $210 for residential property or $280 for commercial property.
Livingston Resident Sewage Disposal Contractor Bond
Livingston County resident sewage disposal contractors must post a $25,000 surety bond for a $250 premium. Though the bond has a one-year term expiring on December 31, the cost may be prorated to match the time remaining until the bond’s end date. Along with the surety bond, applicants must submit a permit application along with the location and dimensions of the property and a Livingston County Health Department approved plotted plan of the proposed sewage disposal system.
Visit SuretyBonds.com or call us at 1 (800) 308-4358 to talk to a representative to get started on securing your Michigan bond today!
Search all contractor bonds in Michigan
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 on the right below to browse all of our available contractor bonds in Michigan You can also try searching by bond amount, obligee, or bond name.