Form Cra - Combined Registration Application For State Of Delaware Business License And/or Withholding Agent - Division Of Revenue Page 26

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S
D
TATE OF
ELAWARE
D
F
EPARTMENT OF
INANCE
D
R
IVISION OF
EVENUE
C
S
B
ARVEL
TATE
UILDING
820 N. F
S
RENCH
TREET
P.O. B
8911
OX
W
, D
19899-8911
ILMINGTON
ELAWARE
DIVISION OF REVENUE
TECHNICAL INFORMATION MEMORANDUM 93-5
AUGUST 19, 1993
I.
INTRODUCTION
This Technical Information Memorandum, constitutes the Division of Revenue's
Regulations with regard to contractor licensing and bonding requirements under 30 Del.
C. §375; 30 Del. C. §§2501, 2502 and 2503. These regulations are promulgated under 30
Del. C. §§21O3 and 563.
II.
SUMMARY OF REQUIREMENTS
A. Section 375 Requirements (Non-Residents)
1. Surety bonds in the amount of 6% of the amount of the contract(s) or
subcontract(s) requiring the provision of labor or labor and material are required
for all non-resident contractors for contracts within the State of Delaware in
which either:
(a) The single contract or subcontract totals $20,000 or more; or
(b) The contract or subcontract is a “cost-plus” contract whose estimated cost-
and-profit totals $20,000 or more; or
(c) The aggregate of two or more contracts or subcontracts in a calendar year
totals $20,000 or more.
2. The Division of Revenue will accept cash bonds irrespective of the size of the
contract or contracts covered by the bond. The Director of Revenue will, by
application, accept bank letters of credit to fulfill the bonding requirements.
Requests for authorization to accept bank letters of credit should be made by letter
to the Director of Revenue. The bank issuing or confirming a letter of credit
presumptively must be a bank authorized to do banking business within Delaware.
3. The contractor's bond shall be filed before construction commences on any
contract upon which a bond is required pursuant to 30 Del. C. § 375, as outlined
in Paragraphs 1 (a)-(c) above.

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