CONTRACTOR BONDS

Plain English Breakdown

The official source material does not provide specific details on how homeowners are affected, so this claim was removed.

Contractor Bond Requirements

This act changes the bond amounts that contractors must have based on their type of work and project size.

What This Bill Does

• Changes the amount of bonds required for general contractors to $25,000.
• Sets a lower bond requirement of $20,000 for general contractors who only do residential work with a special endorsement.
• Requires mechanical or specialty contractors and home inspectors to have a bond of $10,000.

Who It Names or Affects

• Contractors in Alaska

Terms To Know

Bond requirement

The amount of money or financial guarantee a contractor must have to protect against losses from their work.

Limits and Unknowns

• Does not specify when the changes will take effect.
• Does not cover all types of contractors and projects.

Official Summary Text

CONTRACTOR BONDS
An Act relating to bond requirements for contractors.

Current Bill Text

HB0181a -1- HB 181
New Text Underlined [DELETED TEXT BRACKETED]

34-LS0778\A

HOUSE BILL NO. 181

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY REPRESENTATIVES PRAX, Tomaszewski

Introduced: 4/9/25
Referred: Labor and Commerce

A BILL

FOR AN ACT ENTITLED

"An Act relating to bond requirements for contractors." 1
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 2
* Section 1. AS 08.18.071(b) is amended to read: 3
(b) The amount of the bond for a 4
(1) general contractor shall be $25,000; 5
(2) general contractor with a residential contractor endorseme nt under 6
AS 08.18.025 who performs exclusively residential work shall be $20,000; 7
(3) mechanical or specialty contractor or home inspector shall b e 8
$10,000; or 9
(4) contractor whose work on one project with an aggregate con tract 10
price of $20,000 [$10,000] or less, including all l abor, materials, and other i tems, 11
when the work is not part of a larger or major operation or oth erwise divided into 12
contracts of less than $20,000 [$10,000] to evade a higher bonding requirement, shall 13
be $10,000 [$5,000]. 14