Form Cra - Combined Registration Application For State Of Delaware Business License And/or Withholding Agent - Division Of Revenue Page 28

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2. In the case of contracts in excess of $50,000 which are competitively bid, the
contractor or subcontractor shall have initiated the license application procedure
with the Division of Revenue prior to, or in conjunction with, the submission of a
bid on a contract, or in the case of a subcontractor, prior to the submission of a bid
by the general contractor.
3. Every architect, professional engineer, contractor, or construction manager must
file with the Division of Revenue a statement of the total value of any contract or
subcontract entered into with a non-resident of the State of Delaware within ten
(10) days of entering into such contract. This statement (Form 5060) must include
the names and addresses of the contracting parties, along with their Federal
Employer Identification or Social Security number (whichever is on their Division
of Revenue business license), the date the contract was awarded and amount of
the contract.
4. The civil penalty for failure to comply with the provisions of this section shall be
a fine in the amount of up to $10,000 for each such occurrence.
5. Willful or knowing failure to comply with the provisions of this section
constitutes a crime punishable- by a fine of up to $3,000 and/or imprisonment of
up to six (6) months.
III.
RELEASE OF BONDS
The Division of Revenue procedure to release a contractor bond is as follows:
After completion of a bonded contract, the contractor or subcontractor must notify the
Division of Revenue in writing of completion and request cancellation of the bond. The
Division of Revenue, upon receipt of the Bond Cancellation Request will take the
following steps:
1. Examine Division of Revenue records to determine compliance with all state
taxes and licensing fees. Accounts receivable records will also be checked for any
outstanding balance due and owing the State of Delaware.
2. Contact the Department of Labor to determine compliance with all unemployment
insurance requirements.
3. Upon determination that both Division of Revenue and Department of Labor
requirements have been fulfilled, the Division of Revenue, in the case of a surety
bond, will send a final release to both the surety company and the contractor or
subcontractor acknowledging such compliance, and the bond will thereafter be
released pursuant to the surety company's procedures.

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Parent category: Financial