Missouri licenses certain contractors at the state level, which does not involve purchasing a bond. However, local jurisdictions that have their own licensing or permitting rules may require a contractor license bond.
Missouri’s “Little Miller Act,” mandates the purchase of performance bonds and payment bonds by contractors before they can work on state-funded construction projects valued above a certain dollar amount. The Little Miller Act does not apply to privately funded construction projects, but many private project owners require performance and payment bonds anyway to protect themselves and their investors, particularly for larger projects. Also, any project owner (referred to as the “obligee” in the lingo of surety bonds) can require a bid bond from each contractor (the bond’s “principal’) in competitive bidding situations.
Other construction bonds that may be required in Missouri include:
- Maintenance bonds
- Subdivision/site improvement bonds
- Supply bonds
- Solar decommissioning bonds
- Right of Way bonds
