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Bond Requirements

Out Of State Contractor Bonds

With limited exceptions, each contractor with a principal place of business outside of Iowa must file a $25,000 bond in order to register. Having a branch office in Iowa does not exempt a contractor from the bonding requirement.

The bond guarantees that you pay all taxes, penalties and other monies due to the State of Iowa as a result of your work in Iowa.  Only the State and its agencies can collect under the bond.

Your bond must be prepared using the bond form provided by the Iowa Division of Labor.

You must file the original bond when you apply for your construction contractor registration number. A surety company licensed to do business in Iowa must execute your bond, and in most cases, you must attach your surety company’s power-of-attorney.

False information.

Supplying false information with a contractor registration application may result in a $500 civil penalty and criminal prosecution.


Instead of submitting a bond, a contractor may submit with the contractor registration application form a copy of the contractor's letter from the Department of Transportation stating that the contractor is prequalified to bid on projects pursuant to Iowa Code section 314.1.

If enforcement of the bonding requirement would cause denial of federal funding or be otherwise inconsistent with federal law, the bonding requirement will be suspended.

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