A North Carolina general contractor license bond has been out of reach for most surety bond applicants for many years. The nature of the surety's obligation in this class has typically been onerous, unlike the simple contractor license and permit bonds (L&P bonds) required by other states and municipalities. Some changes in the the treatment of these surety bonds by the obligee and a broader appetite among surety companies has made application and approval of contractor bonds of this class easier. We are happy to now offer them under favorable terms for qualified GCs.
21 NCAC 12A .0204 regulates the capital requirements of general contractors, and the North Carolina general contractor bond limits required of GCs in lieu of said capital levels. Pursuant to Section (e.), "In lieu of demonstrating the level of working capital as required in Subparagraphs (c)(2) and (d)(2) of the Administrative Rule or net worth under Subparagraph (b)(2), a contractor may file a surety bond issued by a surety company authorized to transact surety business in North Carolina that carries an AM Best rating of A-Excellent or better. The NC general contractor's bond must be continuous in form and remain in full force and effect for the duration of the license to practice general contracting in North Carolina or until the applicant demonstrates the required level of working capital as required by the Rule. The license levels and corresponding bond penalties are as follows:
The obligee of the surety bond is the State of North Carolina for the benefit of "any person who is damaged by an act or omission of the applicant constituting breach of a construction contract, breach of a contract for the furnishing of labor, materials, or professional services to construction undertaken by the applicant, or by an unlawful act or omission of the applicant in the performance of a construction contract." The North Carolina general contractor license bond is not cancelable on thirty day written notice to the North Carolina Licensing Board for General Contractors (NCLBGC). Contractor bonds and application materials are to be submitted to:
5400 Creedmoor Road
North Carolina surety bond leader, Surety One, Inc. is a bond underwriter, international insurance brokerage and surety-focused managing general agency licensed nationwide, in Puerto Rico, U.S. Virgin Islands, Canada and Dominican Republic. We specialize in surety bonds (commercial and contract), fidelity bonds and pure financial guarantee. Unique among surety underwriters, Surety One, Inc. enjoys very broad binding/issuing authorities and non-standard capacity for subprime credit applicants. Call (800) 373-2804, email Underwriting@SuretyOne.com or click here for more information about a North Carolina general contractor's license bond application package or information about any surety bonding need.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
MORE ABOUT "CONTRACTOR'S BONDS"
A “contractor’s bond” is one of the most common surety bond needs in the North American market but what does that term mean? MANY different parties may require a contractor to provide a "bond". Private and public project owners, state licensing boards and local municipalities all routinely require contractors to file a bond of one type or another to guarantee very specific things. Generally the need will fall in to one of these categories: