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Georgia Contractor License Bonds


Georgia Contractor License Bond Information

Contractor license bonds are surety bonds that must be purchased by various types of contractors in Georgia to ensure compliance with the rules and regulations of the state or local government entity requiring the bond. The State Board for Residential and General Contractors requires a $25,000 surety bond.

Residential Basic and Residential Light Commercial license applicants can submit a $25,000 surety bond, a letter of credit, affirmation of minimum net worth, or a bank credit form indicating two years of banking history. Contractor license bonds are also required as a condition of a license or permit by various local municipalities and counties in Georgia.

The following Georgia cities and counties also require contractors to be bonded for certain types of licenses and permits; Augusta, Cordele, East Point, Kennesaw, Oglethorpe, Powder Springs, Putnam County, Smyrna, Thomas County, and Valdosta. See our Spotlight article for more on Contractor License Bonds. If this bond is for a job that you are bidding or a contract that has been awarded to you, the surety bond you need is a Contract/Construction Bond rather than a Contractor License Bond.

How Much Does a Contractor Bond Cost in Georgia?

State Board for Residential and General Contractors Bond
Non-Resident Contractor's Tax Bond
Contractor License Bond - Filed with City, County or Other Local Government

Bonds up to $25,000

1-Year Bond Starts at $100.00
1% of the Bond Amount


2-Year Bond Starts at $175.00
1.75% of the Bond Amount

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What does a Contractor Bond Protect Against?

The State Board for Residential and General Contractors Bond ensures that the contractor complies with the conditions of any written contract or written warranty made by the contractor or his agents in connection with the sale or exchange of any structure built. The surety bond may be drawn upon to pay losses, damages, and expenses incurred by purchasers of any construction product and their vendees or successors in title by reason of any fraudulent misrepresentation as to liens against or titles to structure built. Further, the bond guarantees compliance with provisions of O.C.G.A. Section 43-41-1, et seq. governing the licensure of residential and general contractors in Georgia.

Getting Your Georgia Business License or Registration

Financial and Insurance Requirements as mandated by the State Licensing Board for Residential and General Contractors.

RESIDENTIAL BASIC CONTRACTORS

  • Minimum net worth of $25,000 satisfied by a surety bond, bank letter of credit, affirmation of minimum net worth.
  • Proof of general liability insurance in a minimum amount of $300,000.00 per occurrence.
  • Proof of workers' compensation insurance as required by Georgia law.
  • There are no individual project size limitations.

RESIDENTIAL-LIGHT COMMERCIAL CONTRACTORS

  • Minimum net worth of $25,000 satisfied by a surety bond, bank letter of credit, affirmation of minimum net worth.
  • Proof of general liability insurance in a minimum amount of $500,000.00 per occurrence.
  • Proof of workers' compensation insurance as required by Georgia law.
  • There are no individual project size limitations.

Work Experience and/or Education Requirements as set by the State Licensing Board for Residential and General Contractors.

RESIDENTIAL BASIC CONTRACTOR

Applicant must have a minimum of two years of proven experience working as or in the employment of a residential contractor, predominately in the residential-basic category, or other proven experience deemed substantially similar by the Residential Division; and, applicant must have had significant responsibility for the successful performance and completion of at least two projects falling within the residential basic category in the two years immediately preceding application.

RESIDENTIAL-LIGHT COMMERCIAL CONTRACTORS

Applicants can qualify to practice as a Residential Light-Commercial Contractor through formal education or practical experience, or a combination of the two. Applicant must have either received a baccalaureate degree from an accredited four-year college or university in the field of engineering, architecture, construction management, building construction, or other field acceptable to the division and has at least one year of proven experience working as or in the employment of a residential contractor, general contractor, or other proven experience deemed substantially similar by the division, or has a combination acceptable to the division of academic credits from any accredited college-level courses and proven experience working as or in the employment of a residential contractor, general contractor, or other proven experience deemed substantially similar by the division equaling at least four years in the aggregate. For purposes of this subparagraph, all university, college, junior college, or community college-level courses shall be considered accredited college-level courses; or have a total of at least four years of proven active experience working in a construction industry related field, at least two of which shall have been as or in the employment of a residential contractor, or other proven experience deemed acceptable by the division; and the applicant must have had significant responsibility for the successful performance and completion of at least two projects falling within the residence-light commercial category in the four years immediately preceding application.

Definitions of Contractor Categories as defined by the State Licensing Board for Residential and General Contractors.

RESIDENTIAL BASIC CONTRACTOR OCGA § 43-41-2 (10)

"Residential-basic contractor" means and encompasses a person who performs contractor work or activity relative to detached one-family and two-family residences and one-family townhouses not over three stories in height and their accessory buildings and structures;

RESIDENTIAL-LIGHT COMMERCIAL CONTRACTOR OCGA § 43-41-2 (11)

"Residential-light commercial contractor" means and encompasses a person who performs any contractor work or activity performed by a residential-basic contractor and, additionally, includes such contractor work or activity related to multifamily and multi-use light commercial buildings and structures, and their related accessory buildings and structures, which are less than four stories in height; less than 25,000 square feet in aggregate interior floor space, except as otherwise provided in this chapter; and are constructed of wood or light gauge metal frame, brick veneer, prefabricated, or manufactured type of construction; or are pre-engineered steel buildings not exceeding 50,000 square feet of interior floor space; provided that such buildings or structures are not of the type of building or structure that would constitute a special hazard to property or to life and safety of persons.

Other Helpful Information and Links

GEORGIA BOARD OF RESIDENTIAL & GENERAL CONTRACTORS