Bonding in Wyoming

A surety bond is a 3-party promise. The contractor (principal) pays a surety company for a bond that a customer, subcontractor, or a public body (obligee) can draw against if the contractor breaks the rules the bond covers. The surety pays valid claims up to the face value. The contractor then owes the surety for what the surety paid out. A bond protects the public. It is not insurance for the contractor. Wyoming does not require a statewide license bond for electrical contractor licenses issued by the Department of Fire Prevention and Electrical Safety, and there is no statewide plumbing or HVAC license. Wyoming does not issue a general contractor license. Bonds in Wyoming show up in 3 distinct places. Keep them separate. 1. Municipal contractor bonds. Wyoming cities sometimes require a surety bond for contractor registration inside city limits. Amounts vary. Cheyenne, Casper, Jackson, and Gillette each run their own bond requirements for plumbing, mechanical, and general-contractor registration. Verify with the city's building or licensing department before posting. 2. Public works payment and performance bonds (Wyoming's Little Miller Act, Wyoming Statute 16-6-112). Under Wyoming Statute 16-6-112, the contractor on a public construction contract exceeding the statutory threshold must furnish a performance bond and a payment bond, each in an amount prescribed by the public body, before starting work. The performance bond protects the public body if the contractor fails to complete. The payment bond protects subcontractors and suppliers. Both bonds must be written by a surety authorized in Wyoming. These are project bonds, not license bonds. Source: Wyoming Statutes Title 16 via Wyoming Legislature (https://wyoleg.gov/). 3. Mechanic's-lien bonds (Wyoming Statute Title 29). A contractor or property owner can post a surety bond under Wyoming Statutes Title 29 to release a mechanic's lien from a property. The claim attaches to the bond instead of the real estate. This is a project-specific lien tool, not a license bond. Premium math. A surety charges an annual premium, typically 1 percent to 3 percent of the bond face value for a contractor with strong credit and no prior claims. Weaker credit, tax liens, prior surety losses, or a new business can push the rate to 5 percent to 10 percent or more. A $5,000 municipal bond at 2 percent is $100 per year. Project payment and performance bonds on Wyoming public works are priced per job, usually 0.5 percent to 3 percent of the contract price. What claims look like. A homeowner, subcontractor, or public body files a complaint with the issuing authority or sues in state court. If the claim falls within the bond's coverage and is reduced to a judgment or administrative order, the surety pays and then pursues the contractor for reimbursement. Bond, insurance, and workers' compensation are separate requirements. A Wyoming contractor carries any applicable municipal or project bond, general liability insurance at whatever level the work and contract require, Wyoming workers' compensation coverage under Wyoming Statute 27-14 (mandatory for construction employers through the Wyoming Department of Workforce Services state fund, which has monopoly workers'-comp status), and any board or city license (state electrical or municipal mechanical).