As of January 1st, 2015, applicants and renewing licensees will have to provide a higher Alaska General Contractor Surety Bond. The changes to Alaska statute are as follows:
- The amount of the surety bond for a general contractor shall be $25,000;
- A General contractor with a residential contractor endorsement under 12 AS 08.18.025 who performs exclusively residential work shall provide a $20,000 surety bond;
- A mechanical or specialty contractor or home inspector shall provide $10,000;
- A contractor whose work on one project with an aggregate contract price of $10,000 or less, including all labor, materials, and other items, when the work is not part of a larger or major operation or otherwise divided into contracts of less than $10,000 to evade a higher bonding requirement, shall be $5,000.
The essential elements of the Alaska contractor surety bond remain unchanged. The bond obligation guarantees that the principal “will pay all taxes and contributions due the state and political subdivisions of the state, and shall pay all person furnishing labor or materials or renting or supplying equipment to the principal, and shall pay all amounts that may be adjudged against the principal by reason of negligent or improper work or breach of contract in the conduct of the contracting business or by reason of damage to public facilities occurring in the course of a construction project, and shall pay all amounts necessary to satisfy settlements of valid liens and judgments which result from lien foreclosure suits”. The bond is cancelable, being released thirty days after the surety sends written notice of cancellation to the Department of Commerce, Community, and Economic Development, Division of Corporations, Business and Professional Licensing, however there is a “tail”. The general contractor bond shall apply to all liens and liabilities which arise during the effective period of the bond and to which the bond is applicable under statute, even if the liens are foreclosed or valid liens settled after the effective period of the bond or the liabilities are enforced after the effective period of the bond. Further information on licensing of contractors in the State of Alaska can be found on the state website at http://commerce.state.ak.us/dnn/cbpl/ProfessionalLicensing/ConstructionContractors/InitialApplications.aspx.
Alaska surety leader, Surety One, Inc. is a specialist in providing for the bonding needs of the construction and commercial contracting industries. We offer this class of surety bond to all applicants in every state where contractors must be bonded. Visit SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email Underwriting@SuretyOne.com for an Alaska contractors surety bond application or information about any surety need.