What a contractor license bond is
Some states, and many cities and counties, make contractors post a bond to get or renew a license. It protects customers, workers and the public if the contractor breaks the licensing laws, for example by abandoning a job or not paying workers. The contractor repays the surety for any claim it pays.
In Montana
Montana requires a construction contractor license from the Department of Labor and Industry from January 1, 2026, under 37-45-201, MCA, but the license law does not require a surety bond. State law bars cities and counties from issuing their own licenses or bonds for the same purpose.
- Contractor registration moved from Title 39, chapter 9 to Title 37, chapter 45 by Chapter 644, Laws of 2025.
You need this bond if you're
- A contractor applying for a new license
- A contractor renewing or reactivating a license
- A business changing its entity type or qualifier
- A contractor starting work in a city or county that requires its own bond
What the surety looks at
Basic business and owner details. Most license bonds need a credit check but no financial statements.