South Dakota Contractor License Bond
What it is & who requires it
Contractors working in South Dakota who have found that there is no state license to bond. It is worth being precise about why, because the answer is unusual. South Dakota does not license general contractors at all — Title 36 of the codified laws runs to seventy-one chapters of licensed professions and not one of them is contractors. It does license two building trades statewide, electricians and plumbers, and neither of those licenses carries a surety bond: the plumbing chapter contains no bonding provision of any kind, and the electrical one requires an instrument the State Electrical Commission’s own form describes as being in lieu of a surety bond, backed by a state fund rather than by a surety. So the bonding question moves down a level. The cities license contractors and the larger ones bond them — which means the answer to whether you need a South Dakota contractor bond is: not from the state, and it depends entirely on the city.
Obligee: The South Dakota city that licenses the trade — the state licenses no general contractors at all. Citation: SDCL title 36 (Professions and Occupations — 71 chapters, none of them contractors); SDCL 36-16-20 (Electricians — undertaking and insurance required); SDCL ch. 36-25 (Plumbers — no bond or surety provision); SDCL 9-34-12 (municipal authority to license and regulate); municipal contractor licensing ordinances.
Bond amount
Set by the obligee — the exact amount is confirmed automatically when you start your bond in our portal, or call 317-942-0549.
How to get it
This bond is individually underwritten, so it is not issued instantly. Request a quote and a licensed producer follows up to walk you through it.
Request a bond quote
Tell us about the bond and the project. A licensed producer follows up — these bonds are individually underwritten, so they are not issued instantly.
Term & renewal
Term: Set by the city that requires it — South Dakota municipal contractor bonds are commonly written as continuous bonds that run with the license.
Renewal: With the municipal license, and the cycle varies by trade rather than by city: one city renews its trade classes every two years and its residential building classes every three, while its neighbors expire every license on December 31.
Filing
Filed with the city that licenses your trade, not with the state, and there is no state office to file with even if you wanted to. Because the requirement is entirely municipal the variation is wide, and it is the reason no figure appears here. The trades are cut differently from city to city — one city bonds ten separate trade classes at one sum, its residential builders at a higher one, and its sign contractors and building movers on separate instruments again, while a neighboring city runs a single building contractor license covering one, two and three family dwellings. And the variation is not only in the amount: the same trade can be bonded in one city and licensed without a bond in the next, so a residential contractor bonded in one South Dakota city may find the city down the road asks only for insurance. Two things recur often enough to plan around. The credential is usually per trade rather than general, so holding one license rarely covers another kind of work. And a bond in one South Dakota city does not satisfy another: three of the ordinances read state in terms that their bond is in addition to all other license bonds required by any political subdivision. Tell us the city and the trade and we confirm the requirement, the instrument and the amount against the obligee before quoting.
Source
This bond requirement is corroborated by multiple public sources; The South Dakota city that licenses the trade — the state licenses no general contractors at all sets the exact amount, which we confirm when you start your bond.
Related South Dakota bonds
Frequently asked questions
- Who requires the South Dakota Contractor License Bond?
- It’s required by The South Dakota city that licenses the trade — the state licenses no general contractors at all (SDCL title 36 (Professions and Occupations — 71 chapters, none of them contractors); SDCL 36-16-20 (Electricians — undertaking and insurance required); SDCL ch. 36-25 (Plumbers — no bond or surety provision); SDCL 9-34-12 (municipal authority to license and regulate); municipal contractor licensing ordinances). Contractors working in South Dakota who have found that there is no state license to bond. It is worth being precise about why, because the answer is unusual. South Dakota does not license general contractors at all — Title 36 of the codified laws runs to seventy-one chapters of licensed professions and not one of them is contractors. It does license two building trades statewide, electricians and plumbers, and neither of those licenses carries a surety bond: the plumbing chapter contains no bonding provision of any kind, and the electrical one requires an instrument the State Electrical Commission’s own form describes as being in lieu of a surety bond, backed by a state fund rather than by a surety. So the bonding question moves down a level. The cities license contractors and the larger ones bond them — which means the answer to whether you need a South Dakota contractor bond is: not from the state, and it depends entirely on the city.
- How much is the South Dakota Contractor License Bond?
- Set by the obligee — the exact amount is confirmed automatically when you start your bond in our portal, or call 317-942-0549.
- How do I get the South Dakota Contractor License Bond?
- This bond is individually underwritten, so it is not issued instantly. Request a quote and a licensed producer follows up to walk you through it.
- What is the term?
- Set by the city that requires it — South Dakota municipal contractor bonds are commonly written as continuous bonds that run with the license. Renewal: With the municipal license, and the cycle varies by trade rather than by city: one city renews its trade classes every two years and its residential building classes every three, while its neighbors expire every license on December 31.
- Is this bond insurance for me?
- No. It protects the obligee and the public — not you. If a valid claim is paid, you repay the surety.
- How is this requirement verified?
- This bond requirement is corroborated by multiple public sources. The obligee sets the exact amount, which we confirm automatically when you start your bond in the portal or with a producer.
