Surety Bond Encyclopedia

Class U Building Contractor ($200,000) 2025 - 2026 Term Bond - New Castle County, DE in Delaware

Brief Summary

Class U is the only New Castle County building contractor license with no cap on project value, and it carries the County's largest building contractor bond at $200,000. If your jobs can exceed $200,000 in value, Class A is not enough. The bond is written on the County's own Statutory Compliance Bond form, and the County issues a new form for each license period.

New Castle County, Delaware requires a $200,000 Statutory Compliance Bond from every Class U building contractor, the license class for projects of unlimited value. The bond names New Castle County as obligee, is written on the County's form for the current license period, and must be in hand before you start the online permit endorsed license application along with your Delaware business license and certificate of liability insurance.

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How to Apply for a Class U Building Contractor ($200,000) 2025 - 2026 Term Bond:

  • Confirm Class U is the right class: it is the only class for projects over $200,000 in value.
  • Obtain a State of Delaware business license and a certificate of liability insurance at the required limits.
  • Complete the bond application and review the quoted premium.
  • Have the surety execute the County's Statutory Compliance Bond form for the current license period at $200,000, with a legible seal.
  • Sign the back of the bond form as sole proprietor or principal.
  • Apply online through the County's GET LICENSED system and pay the $400 license fee and $10 ICC Digital Code Access Fee.

Detailed Information About the Delaware Class U Building Contractor ($200,000) 2025 - 2026 Term Bond:

Which class you need

New Castle County requires a permit endorsed contractor license for building construction that needs a permit. The class is set by the largest project value you will take on, and the bond follows the class.

  • Class U: unlimited project value, $200,000 bond
  • Class A: projects up to $200,000, $150,000 bond
  • Class B: projects up to $100,000, $50,000 bond
  • Class C: projects up to $50,000, $25,000 bond

New home builders must hold at least a Class A license and provide proof of warranty company membership. Manufactured and modular home installers need at least Class B. Class U covers both home building and manufactured or modular homes.

What the bond guarantees

The Statutory Compliance Bond runs to New Castle County. Under it, the contractor promises to comply with the New Castle County Code and with Delaware and federal law, to correct or pay for the correction of violations within the time the Department allows, to pay penalties, fees and charges within 15 days of issuance, and to indemnify the County. The County has three years, measured from the certificate date stated in the bond, to issue a notice of violation. If the County makes a claim, the surety must pay within 35 days of the demand. The surety may cancel only on 45 days advance notice to the contractor and the County.

Term and renewal

The County issues a new bond form for each license period. The 2026 form covers the license period from January 1, 2026 to January 1, 2027. Use the form for the license period you are applying for and confirm the current form with the County before the bond is issued. The contractor must sign the back of the form as sole proprietor or principal, and the surety's seal must be legible.

Other requirements

The 2026 building contractor requirements call for general liability insurance with a minimum limit of $250,000 per occurrence and a $500,000 aggregate, a State of Delaware business license, and a total licensing fee of $410, made up of the $400 license fee and the $10 ICC Digital Code Access Fee. The County also requires a Contractor License Verification form for each permit issued. Premium on the bond is set by the surety based on the owner's credit, the company's financial statements and its construction history.

Eligibility and Requirements for a Delaware Class U Building Contractor ($200,000) 2025 - 2026 Term Bond:

  • New Castle County as obligee on the County's Statutory Compliance Bond form.
  • Bond amount of $200,000 for Class U.
  • General liability insurance of at least $250,000 per occurrence and $500,000 aggregate.
  • State of Delaware business license. A temporary contractor resident or nonresident license is accepted.
  • New bond form for each license period.

Delaware Class U Building Contractor ($200,000) 2025 - 2026 Term Bond FAQs:

Do I need Class U or Class A?

Class A covers projects up to $200,000 in value and needs a $150,000 bond. Any project above that requires Class U, which has no value limit and needs the $200,000 bond.

Can I keep the same bond from last year?

The County issues a new Statutory Compliance Bond form for each license period. The 2026 form covers January 1, 2026 to January 1, 2027. Confirm the form that applies to your license period with the County before the bond is issued.

What can the County claim for?

Unpaid penalties, fees and charges, the cost of correcting code violations the contractor fails to fix, and losses covered by the indemnity. The County must give notice of a violation within three years of the certificate date stated in the bond, and the surety pays within 35 days of demand.

How much insurance do I need?

At least $250,000 per occurrence for bodily injury and property damage, with a $500,000 aggregate, under the County's 2026 building contractor requirements.

Who do I contact at the County?

Contractor Licensing at (302) 395-5420.

Official and Additional Resources for the Delaware Class U Building Contractor ($200,000) 2025 - 2026 Term Bond:

Other New Castle County, DE Surety Bonds in Delaware

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