Michigan Surety Bonds

Contractor License & Permit Bonds in Michigan

Find the exact license, permit, right-of-way, or public-works bond your Michigan obligee requires — by city, county, and the state. License and permit bonds issue online.

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How contractor bonding works in Michigan

Michigan’s state licenses are exam-based — there is no state contractor bond

LARA licenses residential builders, maintenance-and-alteration contractors, and the electrical, plumbing, and mechanical trades, but every one of those credentials is examination-based — none carries a surety bond. A Michigan contractor bond is therefore always local: a city, county, or road-commission requirement, never a state credential.

County road commissions are distinctive permit obligees

Unlike most states, Michigan counties run separate road commissions that issue right-of-way, driveway, and utility permits. The Road Commission for Oakland County, the Kent County Road Commission, and the Road Commission of Kalamazoo County each accept a surety bond as permit security. Statewide, MCL 224.19b caps a county-road utility right-of-way bond at $20,000 — or $40,000 in counties over 250,000 population — expressly allows a surety bond or letter of credit, bars requiring a cash bond, and lets a single bond cover all of a provider’s permits in that commission’s right-of-way.

Public works carry a 25-percent floor and a claimant-notice clock

On a Michigan public-works contract exceeding $50,000, MCL 129.201–129.203 require a performance bond and a payment bond, each not less than 25 percent of the contract amount. The practical deadline runs under MCL 129.207: a second-tier claimant must give written notice within 30 days of first furnishing labor or materials, and may sue only after 90 days from last furnishing.

Several Michigan cities require cash, not a bond

Not every Michigan permit is bondable, and we will tell you when it is not. Grand Rapids, Ann Arbor, and the City of Wyoming (Kent County, not the state of Wyoming) mandate a cash deposit or letter of credit for street and excavation work rather than a surety bond. Where a city requires cash, a surety bond will not satisfy it — so we point you to the right instrument instead of selling one that cannot be filed.

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Contractor License & Permit Bonds

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Performance & Payment Bonds

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Underwritten bonds in Michigan

Bid, performance, and payment bonds are individually underwritten — request a quote rather than the instant portal:

Michigan surety bond FAQ

Does Michigan require a state contractor license bond?
No. LARA’s residential-builder and trade licenses are examination-based and carry no surety bond. Michigan contractor bonds are set by cities, counties, and county road commissions.
What is a Michigan county road commission bond?
A right-of-way, driveway, or utility permit bond posted to a county road commission. Oakland, Kent, and Kalamazoo county road commissions accept surety; MCL 224.19b caps a county-road utility bond at $20,000, or $40,000 in counties over 250,000, and a cash bond cannot be required.
What bond do I need to cut a street in Michigan?
A right-of-way or excavation permit bond from the city, county, or road commission that owns the road — where surety is accepted. Some cities require cash instead (see below).
Are Michigan public-works bonds different?
Yes. On contracts over $50,000, MCL 129.201–129.203 require performance and payment bonds at no less than 25 percent of the contract, and MCL 129.207 sets a 30-day first-furnishing notice and a 90-day last-furnishing suit window for second-tier claimants. These are underwritten.
Do some Michigan cities require cash instead of a bond?
Yes. Grand Rapids, Ann Arbor, and the City of Wyoming (Kent County), among others, require a cash deposit or letter of credit for street and excavation work — a surety bond will not satisfy those, and we will say so rather than sell one.
Who is Wexford Bonds?
Wexford Bonds is the surety bond brand of Wexford Insurance, LLC, licensed in 48 states. We write Michigan right-of-way, road-commission, and public-works bonds.

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