Who this applies to
Georgia's contractor board does not attach a bond to its licenses. A bond enters only as one of several ways a residential applicant can show financial responsibility, and only if the applicant picks it.
The test belongs to the Residential Basic Contractor and Residential-Light Commercial Contractor licenses. An applicant for either one proves financial responsibility with any one of five items [5]:
- a minimum net worth of $25,000 [5]
- a Bank Credit Reference Form
- a $25,000 surety bond [5]
- a $25,000 line of credit letter [5]
- a $25,000 letter of credit [5]
For financial responsibility, the General Contractor Division looks to net worth. Its applicants affirm a minimum net worth of $150,000 for the general tier or $25,000 for the limited tier [2], and the board's comparison chart shows no bond that can stand in for it [5].
What the rule says
For residential applicants, Georgia treats the bond as one form of evidence: the board's Licensure Comparison Chart lists the $25,000 surety bond as one route to proof of financial responsibility, next to net worth, a bank credit reference and two forms of credit letter [5]. The board's sample bond form makes the Governor of Georgia the obligee and is executed under the licensing act beginning at O.C.G.A. § 43-41-1 [4]. A contractor who files one of the other four proofs does not post the bond [5].
How to comply
Applications go to the State Licensing Board for Residential and General Contractors, part of the Georgia Secretary of State's Professional Licensing Boards Division (board page).
- Pick your proof. A residential applicant chooses one of the five items; the bond, the line of credit letter and the letter of credit all use the same $25,000 figure [5].
- Use the board's bond form if you choose the bond. The sample form names the Governor of Georgia as obligee [4].
- General contractor applicants plan around net worth. The affirmed minimum is $150,000, or $25,000 for the limited tier, and no bond replaces it [2].
Confirm the accepted proofs and the current form with the board before you file.
What changed recently
The board's sample surety bond form for residential contractors was revised in April 2022 [4].
Related
A residential applicant weighing the bond against the other proofs can price the $25,000 bond [5] with the contractor license bond cost calculator. For every other state's rule, see all states' bond requirements.