3 tips on getting bonded for HVAC construction
How much does an HVAC construction license bond cost?
The cost varies from person to person. If you contact a surety bond agency, they can give you an exact quote. However, there are several basic factors that determine the cost of your bond, which you can evaluate yourself before applying.
The largest factor in the cost of this type of bond is the state in which you operate. HVAC market contractor license bonds are state regulated requirements, and each state has their own bond amount. Even if a state doesn’t require an HVAC construction bond, your municipality might, so make sure to check this with them, as well. The bond amount will vary widely depending on your location and area of specialization.
Luckily, you don’t have to pay the entire bond amount. You’re only required to pay a percentage, called a premium, which varies depending on your personal credit score. Top notch credit scores receive better rates than average and sub par scores. If you have great credit standing, you’ll probably pay about 1 percent to 3 percent of the bond requirement for a contractor license. If you have bad credit, you could pay up to 15 percent.
Beyond these two main factors (location and credit standing), there are some things you can do to decrease your bond cost in the short-term and long-term.