What the Delaware-Muncie Metro Plan Commission Commercial Contractor Bond ($20,000) is for
The state, city or county usually requires this bond before it licenses or registers a contractor. It protects customers and the public if the contractor breaks the licensing rules.
The bond amount is set by the agency, utility or fund that asks for it. If the bond holder doesn't meet their obligations, a valid claim is paid up to that amount, and the bond holder repays the surety.
What the price depends on
The surety's published rate. You see the final price before you pay.