Beginning January 1, 2015, handymen and small construction contractors will be required to register with the state and secure a bond for all jobs. The change comes after the passage earlier this year of SB19, which sets the new rules in place. The new regulations will require all contractor work in Alaska to be registered, insured and bonded to a minimum of $5000.00. The bond is meant to be a monetary guarantee to the consumer the work will be finished and can be accessed by customers if contractors fail to complete promised work. A license good for two years will cost $235.00, according to the DCCED.
The Alaska State Homebuilders Association said, depending on a person’s credit, the required $5000.00 bond could be purchased from a commercial insurance and bonding firm for less then $500.00 per year.