Who this applies to
In the District, the bond question turns on which contractor license a business holds.
The Home Improvement Contractor Basic Business License covers anyone who contracts to alter, repair, improve or add to a residential structure in the District. Every holder of that license carries a $25,000 surety bond [1], or a cash bond posted with DLCP in its place.
The General Contractor/Construction Manager license is treated differently. DLCP's contractor licensing page lists no bond for it, for any of Types A, B, C, G and H [2].
So the District's bond follows residential improvement work rather than contracting in general. A company whose license is the General Contractor/Construction Manager license alone has no bond listed against it, while a Home Improvement Contractor licensee holds the bond for as long as that license runs.
What the rule says
The requirement sits in 16 DCMR § 802, the section titled "Bonds or Other Security" in the home improvements chapter, 16-8 [3]. DLCP gives one amount, $25,000, and one term: the bond is maintained for the whole two-year license period, not only on the day the license is issued [1]. The bond may come from an authorized insurance carrier or surety company, or the applicant may post a cash bond with the Department in its place.
How to comply
Contractor licensing in DC runs through the Department of Licensing and Consumer Protection (DLCP).
- Choose the security. A surety bond of $25,000 [1] from an authorized insurance carrier or surety company, or a cash bond posted with DLCP instead.
- File it with DLCP. The Department is where the bond is lodged, whichever form it takes.
- Cover the whole term. A home improvement license runs for two years, and the bond has to be in place for all of that period rather than lapsing partway through [1].
Where a business is unsure whether its work calls for the Home Improvement Contractor license, the General Contractor/Construction Manager license or both, ask DLCP to confirm the category, and with it whether the bond applies. Check the current bond amount and filing steps with DLCP before you apply.
Related
The contractor license bond cost calculator works from a bond amount such as the District's home improvement figure. For the District next to each state, open all states' bond requirements.