What are the Amounts of Bonding required of Contractors in Alaska?
Effective January 1, 2015, bonding requirements for existing contractor license types have increased: Handyman (Contractor) works on one project with an aggregate contract price of $10,000 or less, including all labor, materials, and other items. When the work is not part of a more extensive or major operation or otherwise divided into contracts of less than $10,000 to evade a higher bonding requirement of $5,000, The surety bond company does not have to pay more than the bond amount.
- Labor, including employee benefits
- Taxes and contributions due the State, City, and Borough, in that order
- Material and Equipment
- Claims for Breach of Contract
- Repair of public facilities
The cost depends on the Owner's credit and the length of time the company has been in business. The Handyman Contractor Bond is $100 per year. Most Surety Bond companies give discounts to contractors who purchase multiple years upfront. For example, a two-year Specialty Contractor Bond is around $350 instead of $200 for one year.
- Written by S. Alfonzo