What is a Wisconsin Contractor License Bond?

Aspiring Wisconsin contractors must obtain a Wisconsin Contractor License Bond as part of the state contractor license application process. The Wisconsin Contractor bond guarantees that contractors in Wisconsin will fulfill their construction obligations and abide by the state's regulations within Wisconsin. The bond acts as a financial safeguard for contractor malpractice, protecting the state of Wisconsin and the broader public from potential contractor misconduct. For example, if a contractor did not complete a job according to terms, the person who hired the contractor could potentially be compensated by making a claim against the contractor’s bond.

How Much is a Wisconsin Contractor License Bond?

In Wisconsin, contractor license bonds are mandatory at the county level.  Presented below is a compilation of different Wisconsin Contractor License bonds based on county/location, complete with their corresponding bond amounts and initial pricing options:

• Dwelling Contractor Bond: $25,000, starting at $90
• City of Kenosha Contractor Bond: $10,000, starting at $90
• City of La Crosse Natural Gas Contractor Bond: $10,000, starting at $90
• City of Madison Contractor Bond: $5,000, starting at $90
• City of Milwaukee Concrete Contractor Bond: $5,000, starting at $90
• City of Oconomowoc Contractor Bond: $1,000, starting at $90
• City of Sheboygan Contractor Bond: $5,000, starting at $90
• City of Superior Electrical Contractor Bond: $25,000, starting at $113
• City of Superior General Contractor Bond: $25,000, starting at $113
• City of Superior Heating Contractor Bond: $25,000, starting at $90
• City of Waukesha Concrete Contractor Bond: $5,000, starting at $90
• City of West Allis Concrete Contractor Bond: $3,000, starting at $90

What Type of Contractors Need a Wisconsin Contractor License Bond?

In Wisconsin, state-issued licenses are mandatory for the following types of contracting work:

• Dwelling Contractors: These are individuals or businesses that build, renovate, repair, or modify one- or two-family homes and connected accessory buildings.‍
• Electrical Contractors: These individuals or businesses are licensed to handle electrical work, such as installing, maintaining, repairing, or altering building electrical systems.‍
• Plumbing Contractors: Plumbing contractors are licensed to work on building plumbing systems, covering installation, maintenance, repair, or modification of pipes, fixtures, and related components. They ensure compliance with Wisconsin plumbing codes.
• ‍HVAC Contractors: These contractors are licensed to perform heating, cooling, and ventilation work in buildings. They install, maintain, repair, and service HVAC systems for proper indoor climate control while adhering to Wisconsin state and local HVAC codes.

Do Commercial General Contractors Need to Secure a Wisconsin Contractor License?

In Wisconsin, commercial general contractors are defined as individuals with a background in construction for businesses. Commercial general contractors in Wisconsin conduct the following:

• Supervise construction sites
• Manage materials and equipment
• Coordinate vendors
• Oversee contractors or subcontractors involved in construction or remodeling projects

A state-issued license is not mandatory for commercial general contractors in Wisconsin. Therefore no bond is needed.

Who Regulates Licensing for Contractors in Wisconsin?

Contractor licensing is managed by the Wisconsin Department of Safety and Professional Services (DSPS). The Wisconsin DSPS establishes the standards, application processes, and licensing criteria for contractors operating in Wisconsin, ensuring that contractors meet the necessary qualifications and adhere to the Wisconsin state's laws and regulations.

Phone: (608) 266-2112

Mail Address:

4822 Madison Yards Way

Madison, WI 53705

How can I Obtain a Dwelling Contractor License in Wisconsin?

You must acquire a Dwelling Contractor Qualifier License to obtain a Dwelling Contractor License in Wisconsin. To get a Wisconsin Dwelling Contractor Qualifier Certification, you must:

• Complete a state-required 12-hour initial training course and successfully pass the examination
• Apply for the Wisconsin Dwelling Contractor Qualifier license
• Pay the required application fee of $15 and the credential fee of $30.

Once you have secured the Dwelling Contractor Qualifier license, Wisconsin offers two categories of contractor licenses to choose from when pursuing a Dwelling Contractor license: the standard and the Dwelling Contractor Restricted license. Restricted license holders are limited to engaging in contracts for projects valued at less than $25,000. Below are the requirements for both license types:

• Compliance with worker's compensation requirements mentioned under Wis. Stats.102.Compliance with unemployment compensation requirements mentioned under Wis. Stats.108. 
• Obtain a Wisconsin Contractor license bond of at least $25,000.
• Providing proof of liability insurance of at least $250,000 (not applicable for Restricted License applicants).

The fees for both Dwelling Contractor Licenses consist of a $15 application fee, a $25 credential fee, and an annual renewal fee of $25.

The application for either application must be mailed to the following address:

4822 Madison Yards Way

Madison, WI 53705

How can I Obtain an Electrical Contractor License in Wisconsin?

According to Wisconsin Administrative Code 305.41, individuals must have an electrical contractor license to operate as an electrical contractor in Wisconsin. To obtain an electrical contractor license in Wisconsin is straightforward, as individuals must:

• Complete a Wisconsin Electrical Contractor License Application
• Pay the application fee of $35 and a credential fee of $200, which is based on a 4-year term from June 30, 2023
• Sign the Worker’s Compensation Requirement in the contractor license application stating that the applicant complies with worker’s compensation requirements under Wis. Stats.102.
• Sign the Unemployment Compensation Requirement in the contractor license application stating that the applicant complies with unemployment compensation requirements under Wis. Stats.108. 

The application must be mailed to the following address:

P.O. Box 78780

Milwaukee, WI 53293-0780

How can I Obtain a Plumbing Contractor License in Wisconsin?

According to Wisconsin Statute 145.06, it's only allowed for people to work on plumbing in Wisconsin if they have a valid license from the DSPS. To become a licensed plumbing contractor in Wisconsin, follow these steps:

• Application and Fees: This method requires payment of fees, which include a $20.00 application fee and a $30.00 exam fee. After successfully passing the exam, you'll be required to pay a $500.00 credential fee. This fee is prorated for a 4-year term, starting from March 31st.
• Experience or Engineering Degree: To qualify for the plumber license examination, you must have either 1,000 hours of experience as a licensed journeyman plumber, or an accredited university with a relevant engineering degree.
• Examination: You can choose an exam date listed in the application. For more details regarding the exam's content, please refer to the DSPS's website at http://dsps.wi.gov, go to the "Professions" section, and select "Master Plumber."

How can I Obtain an HVAC Contractor License in Wisconsin?

According to Wisconsin Administrative Code SPS 305.70, individuals must have an HVAC license to operate as an HVAC contractor in Wisconsin. To obtain an HVAC contractor license in Wisconsin is also straightforward, as individuals must:

• Complete a Wisconsin HVAC Contractor License Application
• Pay the application fee of $15 and a credential fee of $160, which is based on a 4-year term from the date of issuance

All the required documents must be mailed to the following address:

P.O. Box 78780 

Milwaukee, WI 53293-0780 

Does Wisconsin have Licensing Reciprocity?

As a friendly reminder, licensing reciprocity is when one state acknowledges a license acquired in another state, sparing the contractor from undergoing the entire procedure of obtaining a new license. This is like how your driver's license works across different states. There's no need to showcase your driving abilities each time you visit a different state because they have confidence in the legitimacy of your license from your original state of issuance.

Currently, Wisconsin does not hold licensing reciprocity for contractors licensed in another state. 

What if I don’t get the required contractor license or contractor license bond in Wisconsin?

Working without the necessary state-mandated contractor license or not purchasing the required contractor license bond in Wisconsin is considered a misdemeanor. In Wisconsin, a misdemeanor typically involves facing fines and the potential for jail time if you are caught contracting without the necessary license. For instance, under Wisconsin Statutes 71.83 (2) (a) 6, a contractor in Wisconsin who fails to acquire the Wisconsin contractor license bond may face a fine ranging from a minimum of $300 to a maximum of $5,000.