General Contractor License ($25,000) Bond - Statewide in Alaska

Brief Summary

The $25,000 bond is the figure for an Alaska general contractor who takes on commercial work or a mix of commercial and residential jobs. Buying the bond lets you register without leaving $25,000 in cash on deposit with the state, and the same bond carries forward at renewal as long as it stays in force.

Alaska Statute 08.18.071 requires every general contractor to file a $25,000 surety bond running to the State of Alaska before the Department of Commerce, Community, and Economic Development will issue a certificate of registration. A general contractor holding a residential endorsement who does exclusively residential work posts $20,000 instead. The bond is filed on department form 08-4971 along with proof of liability insurance, and both documents must be dated within 30 days of when the office receives them.

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How to Apply for a General Contractor License ($25,000) Bond:

• Decide whether you post $25,000 or qualify for the $20,000 amount as a residential endorsed contractor doing only residential work.
• Give your bond agent a copy of the first page of your completed license application, or your license certificate at renewal.
• Make sure the principal name on the bond matches the application exactly, including both the entity name and any DBA name.
• Complete the bond application and review the quoted premium.
• Have the surety complete DCCED form 08-4971 with the General Contractor box marked.
• Submit the bond and certificate of insurance to the Construction Contractors Program within 30 days of the date the documents were generated.

Detailed Information About the Alaska General Contractor License ($25,000) Bond:

Which amount applies to you

AS 08.18.071(b) sets the general contractor bond at $25,000. The only lower figure for a general contractor is $20,000, and that applies only if you hold a residential contractor endorsement under AS 08.18.025 and perform exclusively residential work. If you take even some commercial jobs, you post the full $25,000. Mechanical and specialty contractors post $10,000 and handyman contractors post $5,000.

What the bond guarantees

The bond runs to the State of Alaska and is conditioned on the contractor paying taxes and contributions owed to the state and local governments, paying the people who furnish labor, material or rental equipment, and paying amounts adjudged against the contractor for negligent or improper work, breach of contract, or damage to public facilities during a project.

Under AS 08.18.081 a claimant sues on the bond in district court and serves the complaint on the commissioner and the Division of Insurance. If pending claims exceed the bond, they are paid in this order: labor and employee benefits, then taxes owed to the state, city and borough, then material and equipment, then breach of contract, then repair of public facilities.

How long it lasts

The bond stays in effect until it is cancelled by the surety, the contractor or the commissioner. Suit on the bond must be filed within three years after cancellation. In place of a bond, the statute allows a cash deposit or other negotiable security acceptable to the commissioner in the same amount.

Insurance is a separate requirement

AS 08.18.101 also requires proof of public liability and property damage coverage of at least $20,000 for property damage, $50,000 for injury to one person and $100,000 for injury to more than one person, plus workers' compensation if you have employees. The bond does not replace that insurance.

Eligibility and Requirements for a Alaska General Contractor License ($25,000) Bond:

• Bond amount of $25,000, or $20,000 for a residential endorsed general contractor doing exclusively residential work.
• Obligee is the State of Alaska, filed with the Department of Commerce, Community, and Economic Development.
• Bond and insurance documents dated no more than 30 days before the office receives them.
• Liability insurance of $20,000 property, $50,000 per person and $100,000 per occurrence under AS 08.18.101.
• Workers' compensation coverage if you have employees, as required under AS 23.30.
• At renewal, a bond continuation certificate is accepted in place of a new bond.

Alaska General Contractor License ($25,000) Bond FAQs:

Official and Additional Resources for the Alaska General Contractor License ($25,000) Bond: