Contractor License ($10,000) Bond - City of New Castle, DE in Delaware

Brief Summary

One flat $10,000 bond covers every bonded trade the City of New Castle licenses, from general contractors to roofers, plumbers and electricians. There is no tier to figure out. You pay a premium instead of tying up $10,000 in cash, and the bond goes in with your City business license application.

The City of New Castle, Delaware requires a $10,000 surety bond from any business in a bonded occupation, which includes general contractors and most construction trades, before it can be licensed to work in the City. The bond names the City of New Castle as obligee and must be written by a surety authorized to do business in Delaware. The requirement comes from Section 156-3 of the New Castle City Code.

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How to Apply for a Contractor License ($10,000) Bond:

• Confirm your trade is a bonded occupation under Section 156-2, or ask the Code Official whether a waiver applies.
• Use the legal business name exactly as it will appear on the City of New Castle business license application.
• Complete the bond application and review the quoted premium.
• Receive the executed $10,000 bond naming the City of New Castle as obligee.
• File the bond with the City business license application, using the out-of-City form if your business is based elsewhere.
• Renew the license each year before January 1 and keep the bond in force.

Detailed Information About the Delaware Contractor License ($10,000) Bond:

This is the City of New Castle, not New Castle County

The City of New Castle is a separate municipality with its own business license under Chapter 156 of the City Code. A contractor licensed or permitted by New Castle County still needs the City license, and the City bond, to work inside City limits. The City's Public Services page states that any contractor or service provider doing business in the City must obtain a New Castle City Business License, and it offers a separate application for businesses based outside City limits.

One amount, no tiers

Section 156-3 sets the bond at $10,000 for every bonded occupation. Section 156-2 defines bonded occupations as those the City Building Department Director considers to carry a reasonable potential for danger to community health and safety. The list includes general contractors, electrical, plumbing, roofing, siding and insulation, heating and air conditioning, excavation, demolition, painting, masonry and sidewalk, sign, well drilling, tree trimming, fire sprinkler and alarm, and utility contractors, along with several non-construction trades. The list is not exhaustive, so the Director can add others.

The waiver most people miss

The Code Official may waive the bond on written application when the business poses no reasonable danger to community health and safety, or its scale makes the risk insignificant. For construction work the waiver does not carry forward. Each later building permit requires another written application or an acceptable bond, which is why many contractors who work in the City regularly simply keep the bond in force.

Bond terms set by the code

The City of New Castle is the obligee and the licensee is the principal. The surety can cancel by written notice to the City and the principal, effective 30 days after mailing, and is then released from liability for later acts. Licenses run January 1 through December 31. Fees are set by City Council and are due before January 1 of the license year, with a late penalty of 10% of the original fee per month. Working without a license carries a fine of up to $100, and each day is a separate offense. Confirm the current bond form and fee with the City Building Department before the bond is issued.

Eligibility and Requirements for a Delaware Contractor License ($10,000) Bond:

• Bond amount of $10,000, the same for every bonded occupation.
• Surety company authorized to transact business in Delaware.
• City of New Castle named as obligee, with the licensee as principal.
• Bond in a form acceptable to the City Building Department.
• Owner credit review, which mainly affects the premium rate.

Delaware Contractor License ($10,000) Bond FAQs:

Official and Additional Resources for the Delaware Contractor License ($10,000) Bond: