Indiana Contractor License Bond

As part of the process of obtaining a contractor license, contractors in Indiana must obtain a contractor license bond. This bonding & licensing requirement varies depending on which city in Indiana requires the bond. The bond serves two purposes. Firstly, to ensure that contractors who provide construction work adhere to state laws in Indiana. Secondly, to provide compensation to the public of Indiana in the event of financial harm resulting from the contractor's violation of licensing regulations.

Sample Payment and Performance Bond Form
Indiana Contractor License Bond

Required By: Indiana local county authorities

Bond Amount: Varies by county

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How Much is an Indiana Contractor License Bond?

Look at our list of Indiana cities and counties where an Indiana contractor license bond is required. Getting an Indiana contractor license bond is essential if you work in any of these areas. Our bonds provide assurance for contractors and their customers across Indiana.

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What Type of Contractors are Required to be Licensed in Indiana?

In Indiana, a state-issued contractor's license is typically not mandatory unless you intend to work as a plumbing contractor. While the state government doesn't establish specific licensing rules, there are still various requirements, although not governed directly by the state. Indiana does not mandate an Indiana contractor license but requires businesses to complete registration with the Indiana Secretary of State portal.

Who Regulates Licensing for Contractors in Indiana?

In Indiana, contractor licensing is primarily managed by local municipalities and city authorities. Each city or county in Indiana may have distinct rules, regulations, and contractor licensing requirements. Suppose you need specific information about contractor licensing in Indiana. In that case, it's best to contact your local city office or the relevant department in the city or county where you intend to work as a contractor in Indiana. They can provide you with the precise details you need.

How can I Obtain a Plumbing Contractor License in Indiana?

Obtaining a contractor license is necessary for plumbing contractors in Indiana. The Indiana Professional Licensing Agency manages the licensing process for plumbing contractors. Here's a straightforward breakdown of the licensing requirements:

Eligibility: Applicants must be at least 18 years old.

Application: Start by visiting the state's MyLicense portal and creating a login.

Application Fee: There is a $50 application fee, payable online using a credit or debit card for online applications or by checks or money orders for mail-in applications.

How to Get a Contractor License in Indiana?

Although Indiana generally doesn't require individuals to obtain a contractor license (except for plumbing contractors), contractors are required to register within Lake County and Allen County. Below are the procedures. We recommend checking with your local county government for most up to date details.

Lake County, Indiana

Contractors intending to work in Lake County, Indiana, must obtain their licenses through the county government, specifically under the jurisdiction of the Lake County’s Planning Commission.

General, electrical, and plumbing contractors (for registration only) and HVAC contractors must submit their licensing applications online. The application process involves straightforward steps, which is:

  • Complete Application: Fill out the application form and submit it with a $300 licensing fee.
  • Provide Passport Photos: Attach two colored passport-sized photos to the application.
  • Notarized Endorsements: Include notarized endorsements as part of your application.
  • Pass Written Examination: Successfully pass a written examination with a minimum score of 76 percent or higher.

The application form will request the following information:

  • Applicant's name
  • Business name and address
  • Federal Tax ID Number
  • License type, specifying any specialty if applicable
  • Proof of property and liability insurance policy with a minimum coverage of $500,000 
  • An Indiana Contractor License bond of at least $5,000
  • Proof of workman's compensation insurance
  • Description of the length of service in the contracting business within Lake County, Indiana
  • Two endorsements from Lake County residents who can verify your work experience

Allen County, Indiana

Contractors operating within Allen County must go through the county's Building Department to obtain the necessary contractor licenses. While online applications are not readily accessible, the department does offer a downloadable 37-page document containing rules and regulations.

The Allen County Building Department administers various types of contractor licenses, each designated for specific contractor roles and fees:

  • General Contractors: $90
  • General Contractor Superintendent Registration (required for project oversight): $25
  • Building Contractors for commercial and multi-family builders: $90
  • Building Contractor Superintendent Registration (required for commercial project oversight): $25
  • Residential Contractor License: $60
  • Residential Contractor Superintendent Registration (required for residential project oversight): $25
  • Home Improvement Contractor License (for the repair, alteration, and improvement of one and two-family dwellings): $60

What if I don’t get the required contractor license in Indiana?

Various municipalities throughout Indiana typically set the rules concerning Indiana contractor requirements. Likewise, these municipalities in Indiana outline the fines, charges, and legal consequences for contractors without a proper license. It's important to note that fines escalate for each day of unlicensed work, with a first offense potentially carrying a maximum jail sentence of one year.

How can I avoid claims on my Indiana Contractor License Bond?

If a business/bondholder fails to fulfill its obligations, its customers can claim the bond. To avoid claims on your Indiana Contractor License bond, you must operate according to the guidelines on your license and make good promises to customers.  

To comprehend ways to prevent claims on an Indiana contractor’s license bond, let’s examine the most frequent reasons for such explains:

  • Abandoning an unfinished project 
  • Neglecting to address faulty workmanship
  • Delayed payment to employees or vendors

To steer clear of claims on your Indiana contractor license bond, we advise contractors to follow these guidelines:

  • Ensure all jobs are completed by the contract specifications, prioritizing customer satisfaction. One practical approach is to withhold a portion of payment until the project is fully completed, which can serve as proof of project fulfillment.
  • Address any issues that arise from previous jobs. 
  • Always make timely payments to vendors and employees, as employees or subcontractors can make claims on your contractor bond if they experience payment delays.
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