Illinois Contractor License Bond

How much does an Illinois contractor license bond cost?

The cost of an Illinois contractor license bond varies due to factors such as the bond amount and the risk associated with the license type in question. Many county- or municipality-specific contractor bonds may be issued instantly for 1% of the total bond amount. For example, a general contractor who needs a $10,000 bond may be able to purchase a bond online for just $100.

Applications for certain license types, such as demolition contractors, are seen by underwriters as being of greater risk and must be reviewed before the cost of the surety bond can be determined. Nonetheless, applicants who are highly qualified may still be approved for a cost of just 1% to 3% of the bond amount.

Several municipalities in Illinois require contractor bonds to run concurrently with the license, meaning the term of the bond must end on a specific date. This may mean that the cost of the bond can fluctuate if the initial bond term is slightly longer or shorter than the standard 12-month term.

Get started by selecting your contractor bond type from the list at the top of the page or in the table below.

Why are contractors bonded?

Contractors are bonded to protect the obligee, as well as the general public, from any damage that may occur as a result of the contractor’s failure to comply with all state and local rules and regulations.

If the contractor causes harm to either the obligee or the public, a claim may be made against the contractor’s bond. If the claim is valid, the surety may pay out up to the full bond amount to settle the claim. Once the claim is resolved, the contractor will be responsible for repaying the surety.

How to get a contractor license in Illinois

If one wants to perform contracting duties in the state of Illinois, it is required under 50 ILCS 830 to be licensed and bonded by the county or municipality in which they working, if not a general license. This law applies to all counties, municipalities, and home rule units except the city of Chicago.

A contractor, as defined by 50 ILCS 830 Section 10, is “any person who, in any capacity other than as the employee of another for wages as the sole compensation, undertakes to construct, alter, repair, move, wreck, or demolish any fixture or structure. The term includes a subcontractor or specialty contractor, but does not include a person who furnishes only materials or supplies.” Candidates must complete the following five steps to be eligibly for licensure and are able to submit a completed application to the appropriate department in Illinois.

Step 1: Determine your license type

The first step in the licensing application process is to choose the desired application specific to the type of work the contractor will be performing.

Contractor surety bonds are most commonly required at the municipal level for the following licenses:

• general
• building or construction
• wrecking or excavation
• electrical
• heating, ventilation, and air conditioning
• masonry

The only types of contractors who need a state-level license are roofing and plumbing specialists. General contractors, as well as other types of specialty contractors, have to get licensed with their local authorities.

When it comes to roofing and plumbing, the Illinois Department of Financial and Professional Regulations is responsible for roofing licenses and the Illinois Department of Public Health is in charge of licensing plumbers.

• Roofing contractor: Those who have this occupation install, maintain, and/or repair the roofing of residential and commercial establishments. There are two types of roofing license available in Illinois: limited and unlimited. It is important to note that reciprocity is considered on a case-by-case basis.
• Plumbing contractor: Those who have this occupation install, maintain, and repair pipes, fittings, and other apparatuses of water supply, sanitation, and heating systems. It is important to note that reciprocity is considered on a case-by-case basis.

Specialty contractor licenses such as electricians, mechanics, builders, landscapers, etc., are often issued at the municipal level and are subject to the regulations, requirements, and fees passed by individual cities. Please visit your municipality’s website for more information on specialty contractor licenses

Step 2: Ensure eligibility 

If you want to obtain a plumbing license, the criteria are set by the Department of Public Health. The Department of Financial and Professional Regulation, on the other hand, defines the requirements for obtaining an Illinois roofing license. However, to obtain either of these licenses, the requirements below should be adhered to by all applicants to complete the licensure process successfully.

• Business Entity Registration 

All applicants for an Illinois contractor license first have to register a business entity with the Illinois Secretary of State. The typical structures include corporation, partnership, limited partnership, LLP, and LLC. 

• Tax Requirements

All contractor applicants must register with the Illinois Department of Revenue to make sure they comply with the state’s tax requirements.

• Proof of Experience

To obtain a contracting license, applicants are required to provide proof of experience. The candidate will have to provide proof of being a licensed apprentice for at least four years. The city of Chicago, specifically, does not have any formal experience requirements, so applicants do not need to prove that they have worked in construction to become licensed general contractors. 

• State Examination

Depending on the municipality the applicant works in, he or she will have to pass an Illinois contractor license exam to prove sufficient knowledge and skills in the field. Applicants for a plumber’s license have to successfully complete a state examination. Roofing applicants have to appoint a qualifying individual who needs to pass a state exam as well, according to the Illinois Roofing Industry Licensing Act.

Roofing Contractors: For a roofing contractor license, you must first file an Application for the Roofing Contractors Qualifying Party Examination through Continental Testing Services. To schedule an exam, you must complete and send in your application, along with the required examination fee made payable to Continental Testing Services, Inc., in the form of a check or money order. You can also apply directly online through the Continental Testing Services website. Send examination applications to:

Continental Testing Services, Inc.

P.O. Box 100

LaGrange, IL 60525-0100

Plumbing Contractors: For a plumbing contractor license, you must first file an application for examination for plumber’s license through IDPH. To schedule an exam, you must complete and send in your application at least 30 days before your examination, along with the required examination fee, made payable to Illinois Department of Public Health, in the form of a check or money order. You must also attach a 1”x 1” passport photograph of yourself. 

Specialty Contractors: Call or visit the website of the municipality in which you are working, as each governing city and/or town in Illinois has specific requirements when it comes to eligibility.

Step 3: Purchase insurance and a surety bond

Once all the eligibility requirements have been fulfilled, the next step in the licensure process is to purchase insurance and/or post a surety bond. All applicants should check the amount required of these bonds as they may differ depending on county and type. For roofing, plumbing, and specialty contractor bonds, though, the amounts are generally as indicated below.

• Roofing Contractor License: The contractor license bond must be the original document signed by the applicant in the amount of $25,000. It is important to check the amount of these bonds as they may differ depending on county and type.
• Plumbing Contractor License: The surety bond must be the original document signed by the applicant in the amount of $20,000, naming the Department of Public Health as beneficiary. Bonds must be on the form provided by the Department and must expire on September 30th of the current year. Signatures must be original, and the name of principal must exactly match the name of the business or individual on the application. 
  NOTE: Cross-outs, whiteouts, and riders are not accepted. 
• Specialty Contractor License: Specialty contractor licenses are awarded at the municipal level; other requirements, such as bonds, can be added at this level. Check with your local development authority for more information. Cook County bond and insurance requirements, for example, are outlined further down the page.

Step 4: Compile your documents for application

Each application, depending on the type, requires additional steps. Municipalities have their own roofing, plumbing, and specialty contractor documents and ID needs, but many of the requirements below are typically part of the process for licensure.

Roofing Contractor License application:

• Criminal history
  If the applicant has been convicted of or pled guilty to a criminal offense or felony, the applicant must state so on the application and attach a Certificate of Relief of Disabilities by the Prisoner Review Board.
• Attach one of the three certificates of insurance
  According to administrative code, these documents are: A workers’ compensation insurance certificate, certificate of approval as a self-insurer, or out-of-state workers’ compensation insurance certificate must be obtained. The policy must hold property damage insurance as low as $250,000 for each occurrence of property damage and insurance with a minimum amount of $500,000 for each occurrence of personal bodily harm or injury.
  For more information regarding insurance requirements, visit the IDFPR website.
• Appoint a qualifying party
  The qualifying party will be an individual responsible for all aspects regarding the roofing license of your company. For more information regarding the qualifying party, visit the IDFPR website.
• Applicants must not be more than 30 days delinquent in complying with a child support order.
• Applicants cannot fail to repay an educational loan or scholarship provided or guaranteed by the Illinois Student Assistance Commission or other government agencies in the state.

Plumbing Contractor License application:

• Provide proof of hours
  Depending on the type of license you are applying for, the applicant must meet certain work experience criteria and submit the hours worked.
• Accompanying documents
• Depending on the business type, applicants must submit supporting documents
  Visit the Illinois Department of Public Health for details.
• Attach a certificate of insurance
  Applicants must be insured for a minimum of $100,000 for general liability, $300,000 for bodily harm and injury, $50,000 for property damage, and $500,000 for workers’ compensation.
  The certificate must name the Illinois Department of Public Health, Plumbing Program, 535 W. Jefferson St., Springfield, IL 62761, as certificate holder.
• Note the successful completion of two years of high school or its equivalent, in addition to completing approved courses from a trade school, college, or university

Specialty Contractor License application:

• Requirements and required documents vary within different municipalities. For electrical and plumbing contractors in Cook County, for example, all documents and the application can be found here.

Step 5: Pay the fees and submit the application

Once all the following steps have been completed, applicants are ready to submit their application and pay the designated fees.

Roofing contractor license: Applications must be typed or printed clearly with black ink only.

Licensing/Application Fees

Roofing contractor license:

• $125 application fee (nonrefundable)
• $226 residential roofing examination
• $226 commercial and industrial roofing examination
• $277 residential, commercial, and industrial roofing examination

Note: All fees are nonrefundable. The application fee must be paid by check or money order made payable to Illinois Department of Financial and Professional Regulation. Examination fees must be in the form of check or money order payable to Continental Testing Services, Inc.

Plumber contractor license:

• $175 application fee
• $225 application fee for out-of-state plumbers
• $150 registration fee
• $100 reinstatement/late fee
• $200 returned check fee

Note: All fees are nonrefundable. Payments can be made through check or money order payable to the Illinois Department of Public Health.

Specialty contractor license:

Varies by municipality.

Once the fees and application have been compiled, use the following mailing addresses:

Roofing Contractor License:

Illinois Department of Financial and Professional Regulation

Division of Professional Regulation

P.O. Box 7007

Springfield, IL 62791 

Plumbing Contractor License:

Illinois Department of Public Health

Plumbing Program

525 W. Jefferson St., 3rd Floor

Springfield, IL 62761

Cook County Contractor License Bond Requirements

Cook County exemplifies the significant differences in costs depending on where an applicant is applying to be a contractor and perform his or her duties. Cook County has its own specific bond requirements for demolition contractors, and a $25,000 surety bond is required for billboard, sign, or signboard contractors.

• Demolition Contractor Requirements
  $500 required for demolition leveling
  $20,000 required for the demolition of three stories or less$40,000 required for the demolition of four stories or more

As the largest city in Cook County, Chicago also has specific bond requirements for wrecking contractors that are similar to those of Cook County, as well as a $20,000 plumbing contractor license bond requirement.

• Wrecking Contractor Requirements
  $500 required for clean-up only
  $20,000 required for wrecking a building up to and including three stories
  $40,000 required for wrecking a building of any size

Worker’s Compensation Insurance

If you will be hiring employees for your contracting business, you will need to get worker’s compensation insurance. You can learn more from the Illinois Workers’ Compensation Commission. 

Liability and Property Damage Insurance

You have to obtain liability and property damage insurance with the following minimums:

• Plumbers: minimum $100,000 general liability, $300,000 bodily injury, and $50,000 property damage insurance coverage
• Roofing specialists: minimum $250,000 for a single occurrence of property damage and at least $500,000 for a single occurrence of personal injury or bodily harm

Need a surety bond for a construction project?

Payment bonds and performance bonds are often required for specific construction projects. No matter the state, SuretyBonds.com can get you the bond you need for your next job.

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Additional Resources

• Illinois Department of Financial & Professional Regulation: Roofing Contractor License
• Illinois Department of Public Health: Plumbing Contractor License
• 50 ILCS 830: Contractor Unified License and Permit Bond Act
• Bloomington Contractor Registration Information and Forms
• Champaign Contractor Registration Information and Forms
• Cook County Contractor Registration Information
• Cook County Contractor Registration Application and Affidavit
• Chicago General Contractor License Application
• City of Chicago Contractor License Requirements and Applications
• DuPage County Contractor Registration Information and Forms
• East Peoria Contractor Registration Information and Application Form (link on website)
• Joliet Contractor Registration Registration Information
• Joliet Contractor Permit and Forms
• West Chicago Contractor Registration Form
• West Chicago Registration Information
• Wheaton Contractor Registration Information and Requirements
• Winnetka Contractor Licensing and Bonding Requirements