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What Cities and Counties Require a Code Compliance Bond?

A man with a clipboard inspects a construction site

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 bonds help 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.

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

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

The City of Newark, Delaware bond amount for: an Unlimited General Contractor with a cost of construction over $1,000,000 the bond amount is $200,000, Limited General Contractor with a cost of construction between $500,000 to $999,999.99 the bond amount is $150,000, a General Contractor with cost of construction between $1.00 to $499,999.99 the bond amounts range from $50,000 to $100,000, Unlimited Subcontractor (HVAC, Plumbing, FIre, & Mechanical) cost of construction over $1,000,000 the bond amount is $200,000, Unlimited Subcontractor (HVAC, Plumbing, Fire, & Mechanical) cost of construction less than $1,000,000 the bond amount is $50,000, and a Minor Renovation Contractor cost of construction between $1.00 to $75,999.99 the bond amount is $10,000 to $25,000.

The City of Manfield, Ohio Home Improvement License and Permit bond amount is $15,000.

The City of Warren, Ohio Home Improvement License and Permit bond amount is $7,000.

The City of Elkhart, Indiana Building Code Enforcement License and Permit bond amount is $5,000.

The City of Sioux Falls, South Dakota General Contractor bond amount is $20,000.

The City of East Point, Georgia Residential Contractor bond amount is $25,000.

The City of East Moline, Illinois Contractor bond amount is $10,000.

The City of Lubbock, Texas Compliance bond amount is $20,000.

The County of New Castle, Delaware Class U Building Contractor bond amount is $200,000, Class A Building Contractor bond amount is $150,000, Class B Building Contractor bond amount is $50,000, Class C Building Contractor bond amount is $25,000, HVACR Contractor bond amount is $25,000, Master Plumber Contractor $10,000, Sewer and Drain Cleaner bond amount is $10,000, Decorative Appliance Contractor bond amount is $10,000, Outside Utility Contractor bond amount is $50,000.

The City of Greensburg, Pennsylvania Code Compliance bond amount is determined by the City.

The City of Douglasville, Georgia Contractor Code Compliance bond amount is 10% of the construction cost (minimum bond amount is $10,000 to a maximum $50,000 bond amount).

The County of Hillsborough, Florida Contractor Code Compliance bond amount is $50,000.

Most code enforcement 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 Bond is dependent on credit and the bond amount required. Bond amounts over $50,000 will require personal and business financial statements.

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For more information read our Blog on Code Compliance Bonds.



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