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