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INSTRUCTIONS FOR SPECIAL REQUIREMENTS FOR BUILDING TRADES CONTRACTORS

Please start by completing the State of Delaware Combined Registration Application for State of Delaware Business License

and/or Withholding Agent (Form CRA) in its entirety.

Refer to the Technical Information Memorandum 93-5 for specific requirements of Resident and Non-Resident Contractors and

Real Estate Developers.

The statute requires that all contractors register with the Department of Labor. Form UC-1 must be completed or you must

supply a Certificate of Notice issued by the Division of Unemployment Insurance to document such registration.

The statute also requires that you show evidence of insurance to pay Workmen’s Compensation. You must supply either a

copy of Page 1 of your insurance policy OR the name, address, and policy number of your carrier OR a copy of Form 22

issued by the Industrial Accident Board which certifies your ability to make direct payments of workmen’s compensation.

Even if you do not have employees, the Division of Industrial Affairs form is required.

Every architect, professional engineer, construction 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 contracts. This statement, Form 5060, must include the names and

addresses of the contracting parties. The civil penalty for failure or refusal to comply with this section is a fine of up to

$10,000 for each such occurrence.

Non-Resident Contractors are required to obtain a bond equal to six percent (6%) of the contract amount for all single

contracts/subcontracts exceeding $20,000 or when the aggregate of two or more contracts/subcontracts in a calendar

year total $20,000 or more. Form 1125, Non-Resident Building Trades Contractor Bond, may be used to fulfill this bonding

requirement. The Division of Revenue will accept an alternative bond form supplied by your bonding company or cash

bonds on any contract amount. The contractor’s bond must be filed before construction commences on any contract for

which a bond is required. Bonds will be released at the completion of the contract and after a verification that all State tax

liabilities have been met. The following information must be supplied at the time of making the request for the release of

the bond or a request for a refund of a cash bond.

1. A copy of the contract award.

2. Date construction commenced.

3. Date construction ended.

4. A schedule by month of payments received.

5. A list of persons (resident and non-resident), with social security numbers, employed at the construction site.

6. A Schedule by month of the wages paid to the persons referenced in item #5.

If this application is for bidding purposes only, please check the box on line four.

Be sure to include your license fee. Your fee is proratable for your initial year, based on what month of the year your

business will begin. Only one license fee is required regardless of the number of locations a contractor may have. If you

are engaged in any activity other than contracting as described in the Technical Memorandum, you may be required to

obtain a separate business license for that activity. The license fee is not required if the application is being submitted for

bidding purposes only.

Real Estate Development involves the acquisition of land (raw or improved), the building of structures thereon and the

sale of the land with structures to a customer. Persons engaged in the business of a Real Estate Developer are subject to

the licensing requirements as a contractor and must complete this form. Contractors are permitted to reduce their gross

receipts by amounts paid to subcontractors and Real Estate Developers are permitted to further reduce such receipts by

expenses incurred in the development of realty (see Technical Information Memorandum 93-5 for details).

BE SURE TO SIGN THE STATEMENT AT THE BOTTOM ON THE COMBINED REGISTRATION APPLICATION

AND THE CONTRACTORS FORM.

Form Cra - Combined Registration Application For State Of Delaware Business License And/or Withholding Agent Page 7