Contractor License Bond in Alaska

What this bond requires in Alaska

All construction contractors in Alaska must register with the state and post a surety bond before performing work. Bond amounts are set by AS 08.18 and vary by classification: $5,000 handyman, $10,000 specialty, $25,000 general, and $20,000 for a general contractor with residential endorsement. A residential endorsement is required to construct or alter privately owned residential structures of 1-4 units. A time certificate of deposit or savings passbook in trust for the State of Alaska may be filed in lieu of a surety bond.

Who requires it

The contractor license bond is required by the Alaska Department of Commerce, Community, and Economic Development, Division of Corporations, Business and Professional Licensing - Construction Contractors Section under AS 08.18; 12 AAC 21.

How to file in Alaska

Submit registration application (form CON-4815 General, CON-4818 Specialty, or CON-4816 Handyman) to the Construction Contractors Section along with the executed surety bond (form 08-4971), proof of general liability insurance, workers compensation (if applicable), and the registration fee. Bond must be filed before the license can be issued or renewed.

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FAQ

Common questions

Is a contractor license bond required in Alaska?

Yes. Alaska requires contractor license bonds issued by an admitted surety. The required amount is $5,000 to $25,000.

How much is the bond in Alaska?

The bond amount is $5,000 to $25,000. Your annual premium is a small percentage of that, based on credit and experience.

Who requires the bond?

The bond is required by the Alaska Department of Commerce, Community, and Economic Development, Division of Corporations, Business and Professional Licensing - Construction Contractors Section.

How is the bond filed?

Submit registration application (form CON-4815 General, CON-4818 Specialty, or CON-4816 Handyman) to the Construction Contractors Section along with the executed surety bond (form 08-4971), proof of general liability insurance, workers compensation (if applicable), and the registration fee. Bond must be filed before the license can be issued or renewed.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.