Who this applies to
Delaware has no state board that licenses general contractors. The Division of Professional Regulation licenses only certain trades: electricians, plumbing/HVACR, home inspectors and manufactured home installers. A contractor based in Delaware still needs the contractor business license the Division of Revenue issues.
The bond filed with the Division of Revenue looks outward. It applies to nonresident contractors and subcontractors who have to be licensed under chapter 25 of Title 30 of the Delaware Code [2], so an out-of-state subcontractor is named alongside the out-of-state contractor.
Its size follows the Delaware work they take on. In the Division of Revenue's tax guidance for contractors, the bond equals 6% of the total of all contracts exceeding $20,000 for construction in Delaware, supplied as a surety or cash bond [1].
What the rule says
Section 375 of Title 30 makes the nonresident bond a form of tax security, not a measure of trade competence [2]. The bond is payable to the State to guarantee payment of state taxes and is filed with the Division of Revenue, which accepts a cash bond or a bank letter of credit in place of a surety bond. Its amount is a percentage of contract value rather than a fixed sum, so there is no single Delaware bond figure to quote.
How to comply
The Delaware Division of Revenue issues the contractor business license and receives the nonresident bond (revenue.delaware.gov).
If your business is based outside Delaware:
- Work out the figure from your Delaware construction contracts on the Division's terms: 6% of the total of all contracts exceeding $20,000 [1].
- Post the bond with the Division of Revenue as a surety bond, a cash bond or a bank letter of credit.
Local rules sit on top of the state one, because some Delaware municipalities and counties impose their own contractor registration or permit requirements. Confirm the bond calculation and filing method with the Division of Revenue before you bid.
Related
Because Delaware's figure is a percentage of contract value, work out the bond amount first, then run it through the contractor license bond cost calculator. The wider picture is in all states' bond requirements.