Who this applies to
Alaska attaches its bond to registration. Every construction contractor who registers with the state files a surety bond or an equivalent cash deposit [1], and the rule reaches each registration type on the state's bond form: general contractors, general contractors holding a residential endorsement, mechanical contractors, specialty contractors and handymen, along with home inspectors.
What separates one registrant from the next is the amount. The state's prescribed surety bond form, 08-4971, fixes it by registration type [1]:
- general contractor: $25,000 [1]
- general contractor with a residential endorsement: $20,000 [1]
- mechanical contractor: $10,000 [1]
- specialty contractor: $10,000 [1]
- home inspector: $10,000 [1]
- handyman: $5,000 [1]
Whichever line applies, the bond runs to the State of Alaska, in the sum of the amount marked on the form.
What the rule says
Under AS 08.18.071, registration depends on security [1]; the state's bond form sets the amount by registration type and makes the bond payable to the State of Alaska. That security does not have to take the form of a surety bond. A cashier's check filed as a cash deposit, or a time certificate of deposit or savings passbook assigned to the State, may be filed instead [1]. Where a surety bond is used, the surety's liability is continuous and lasts until the registration is revoked or the surety gives written notice.
How to comply
Registration is handled by the Construction Contractors Program of the Division of Corporations, Business and Professional Licensing, inside the Alaska Department of Commerce, Community, and Economic Development (Construction Contractors Program).
- Work from the state's form. The division's general contractor registration application packet, form 08-4815, reproduces the bond schedule printed on bond form 08-4971 [1]. The bond is written in the sum of the amount marked for your registration type.
- Watch the dates. Bond and insurance documents must be dated no more than 30 days before the division receives them [1].
- Carry the insurance registration also calls for. That means general liability coverage of not less than $20,000 for property damage, $50,000 for injury to one person and $100,000 for injury to more than one person [1], plus workers' compensation coverage where employees are used.
Before you file, confirm the figure for your registration type with the division and on the current version of form 08-4971 [1].
Related
- contractor license bond cost calculator: start from the amount on Alaska's form for your registration type.
- all states' bond requirements: Alaska's registration schedule beside every other jurisdiction's rule.