Limited General Contractor ($150,000) Bond - City of Newark, DE in Delaware

Brief Summary

Check one thing before you buy this $150,000 bond. Newark City Council took up Bill 25-26 in late 2025, an ordinance that removes the performance bond requirement for a City of Newark contractor's license. If the Code Enforcement Division still asks you for the Limited General Contractor bond at this amount, it is a quick filing with an annual premium in place of tying up $150,000 in cash.

The Limited General Contractor ($150,000) bond is the license bond the City of Newark, Delaware has required from contractors working under the limited general contractor classification of its contractor license, which is governed by Chapter 7, Building, of the Newark City Code. The obligee is the City of Newark, and the license is issued through the Code Enforcement Division at 220 South Main Street. Bill 25-26, heard for second reading and public hearing on November 10, 2025, removes the performance bond requirement to obtain a contractor's license, so confirm with the city whether a bond is still part of your application.

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How to Apply for a Limited General Contractor ($150,000) Bond:

• Ask the Code Enforcement Division (302-366-7000, bldgpermitsandlicenses@newark.de.us) whether your license still requires a bond after Bill 25-26.
• Confirm your license classification is Limited General Contractor and that the city wants the $150,000 amount for your file.
• Have the legal business name exactly as it appears on your Newark contractor license application.
• Complete the bond application with owner details for the credit review.
• Pay the premium and receive the signed $150,000 bond naming the City of Newark as obligee.
• Submit the bond with your license paperwork to the Code Enforcement Division, 220 South Main Street, Newark, DE 19711.

Detailed Information About the Delaware Limited General Contractor ($150,000) Bond:

The rule that may have changed

On October 27, 2025, Newark City Council introduced Bill 25-26, an ordinance amending Chapter 7, Building, and Chapter 14, Fire Safety, of the Code of the City of Newark. Its title lists "Removing the Requirement of a Performance Bond to Obtain a Contractor's License." The bill was set for second reading and public hearing on November 10, 2025, presented by the Planning and Development Director. The same ordinance returns the time limit on permit applications and issued permits to 180 days.

Contractors who renewed under the old rules may assume nothing has changed. Before ordering the $150,000 bond, call or email the Code Enforcement Division and ask whether your license application or renewal still calls for it. If the city still requests a bond for your file, this is the instrument to file.

Who posts it and what it covers

The principal is the contractor holding or applying for a City of Newark contractor license in the limited general contractor classification. The City of Newark is the obligee. The bond backs the contractor's promise to follow the city's building code under Chapter 7 when doing permitted work in the city. If the contractor fails to meet those obligations and the city makes a valid claim, the surety pays up to the $150,000 penal sum and then looks to the contractor for repayment.

The license is required for permits

Newark's building permit application lists an active City of Newark Contractor License as required documentation, unless the property owner is doing the work. The contractor license is separate from the city business license, which falls under Chapter 13 of the City Code.

Eligibility and Requirements for a Delaware Limited General Contractor ($150,000) Bond:

• City of Newark, Delaware named as obligee.
• Penal sum of $150,000 for the limited general contractor classification.
• Principal name matching the contractor license application.
• Surety authorized to write bonds in Delaware.
• An active City of Newark Contractor License before pulling building permits, unless the owner does the work.

Delaware Limited General Contractor ($150,000) Bond FAQs:

Official and Additional Resources for the Delaware Limited General Contractor ($150,000) Bond: