Code Compliance & Enforcement Surety Bonds

A Code Compliance Bond guarantees that a contractor will comply with all building codes and regulations set forth by a city or county. Many cities and counties require a contractor to apply for a building permit to build or modify a residential dwelling and in some instances require a bond as well.

A code compliance surety bonds ensures that the provisions in the construction codes are followed and if there are any violations of ordinances and laws, that the violations be corrected. Building permits are often required for the building/modifying of owner occupied dwellings, duplex family dwellings, townhouses and other structures.

Surety Bond Requirements:

Surety bond amounts vary and each city or county has different bond requirements.

The following are examples of various cities' and counties' required code enforcement surety bond amounts:

• The City of Newark, Delaware- bond amount for: an Unlimited General Contractor with a cost of construction over $1,000,000 the surety bond amount is $200,000, Limited General Contractor with a cost of construction between $500,000 to $999,999.99 the surety bond amount is $150,000, a General Contractor with cost of construction between $1.00 to $499,999.99 the surety bond amounts range from $50,000 to $100,000, Unlimited Subcontractor (HVAC, Plumbing, FIre, & Mechanical) cost of construction over $1,000,000 the surety bond amount is $200,000, Unlimited Subcontractor (HVAC, Plumbing, Fire, & Mechanical) cost of construction less than $1,000,000 the surety bond amount is $50,000, and a Minor Renovation Contractor cost of construction between $1.00 to $75,999.99 the surety bond amount is $10,000 to $25,000.
• The City of Manfield, Ohio- Home Improvement License and Permit surety bond amount is $15,000.
• The City of Warren, Ohio- Home Improvement License and Permit surety bond amount is $7,000.
• The City of Elkhart, Indiana- Building Code Enforcement License and Permit surety bond amount is $5,000.
• The City of Sioux Falls, South Dakota- General Contractor surety bond amount is $20,000.
• The City of East Point, Georgia- Residential Contractor surety bond amount is $25,000.
• The City of East Moline, Illinois- Contractor surety bond amount is $10,000.
• The City of Lubbock, Texas- Compliance surety bond amount is $20,000.
• The County of New Castle, Delaware- Class U Building Contractor surety bond amount is $200,000, Class A Building Contractor surety bond amount is $150,000, Class B Building Contractor surety bond amount is $50,000, Class C Building Contractor surety bond amount is $25,000, HVACR Contractor surety bond amount is $25,000, Master Plumber Contractor $10,000 surety bond, Sewer and Drain Cleaner surety bond amount is $10,000, Decorative Appliance Contractor surety bond amount is $10,000, Outside Utility Contractor surety bond amount is $50,000.
• The City of Greensburg, Pennsylvania- Code Compliance surety bond amount is determined by the City.
• The City of Douglasville, Georgia- Contractor Code Compliance surety bond amount is 10% of the construction cost (minimum surety bond amount is $10,000 to a maximum $50,000 surety bond amount).
• The County of Hillsborough, Florida- Contractor Code Compliance surety bond amount is $50,000.

Most code enforcement surety bonds have a set amount of time that the bond will cover after the work is complete. The contractor will still have the obligation to make good on any warranties during that time period.

What Does This Bond Cost?

The premium you pay for a Code Enforcement Surety Bond is dependent on credit and the bond amount required. Our rates start at 1.5% of the bond amount with good credit. Bond amounts over $50,000 will require personal and business financial statements. Contact our Surety Bond Specialists for a free quote that fits your specific situation.

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