Wyoming Construction Bonds

In Wyoming, only electrical contractors are licensed at the state level. However, some cities and counties have their own licensing procedures that include purchasing a contractor license bond.

Wyoming’s “Little Miller Act,” the state’s version of the federal Miller Act, requires both performance bonds and payment bonds for state-funded projects valued in excess of $7,500. Projects up to $100,000 require these bonds to be in an amount equal to 100% of the contract value. For projects valued in excess of $100,000, performance and payment bonds must be for 50% of the contract value.

Although private construction projects are not subject to Wyoming’s Little Miller Act, it’s common for private project owners to require their contractors to furnish both performance and payment bonds, particularly for higher value projects. And, contractors competing for government or private construction projects may be required to provide a bid bond.

Other construction bonds that contractors operating in Wyoming may need to purchase include:

• Maintenance bonds
• Contractor license bonds
• Subdivision/site improvement bonds
• Supply bonds
• Solar decommissioning bonds
• Right of Way bonds

There is a third party to every Wyoming construction bond in addition to the obligee and the principal —the bond’s guarantor (called the “surety”).

The surety investigates every claim received, and if it’s found to be valid, the principal is legally obligated to pay it. But the surety’s guarantee of payment is an agreement to extend credit to the principal by paying a valid claim on the principal’s behalf. So, instead of paying the claim directly, the principal must repay the surety according to the surety’s credit terms. If not repaid, the surety will sue the principal to recover the funds.