California Contractor License Bond

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What is a California Contractor License Bond?

The California Contractors State License Board of the Department of Consumer Affairs requires persons who are applying for a contractor’s license to obtain this bond. There are three classes of contractor license classifications in California that requires this bond:

  • An “A” General Engineering Contractor
  • A “B” General Building Contractor
  • A “C” Specialty Contractor

The purpose of this bond is to ensure that the license applicant will conform to the provisions of Division 3, Chapter 9 of the California Business and Professions Code when performing his or her duties.

This bond – mandated by Section 7071.6 of the California Business and Professions Code – will be for the benefit of the persons who will be harmed by any violation that will be committed against the Code and other rules and regulations. Some of the said persons are as follows:

  • A homeowner who has contracted the services of the licensee for home improvement.
  • A person described in Section 8024 of the Civil Code who suffered non-payment of fringe benefits.
  • A property owner contracting for the construction of a single-family dwelling.
  • An employee of the licensee who failed to receive wages.

How does a California Contractor License Bond work?

This bond will serve as a legal promise regarding the fulfillment of the license applicant’s (known as Principal of the Bond) obligations to the Obligee (beneficiary of the bond). The said promise will be guaranteed by the Surety (surety bond provider).

There’s a financial compensation attached to this bond that the Obligee can recover if the Principal fails to do his or her obligations. The Surety will perform an investigation before any settlement is made. The Surety will check if the Principal has violated the conditions and if the violation is covered by the bond. If it is, the Obligee will be paid. After the payment has been made, the Principal must reimburse the Surety.

How much does a California Contractor License Bond cost?

Contractor license applicants with excellent credit scores will be eligible to pay less than 1% of the bond amount. The bond premium will be higher for those with lower credit scores.

The bond amount is $15,000.

Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!

How can I get a California Contractor License Bond?

APPLY FOR THIS BOND –You may send your application for this bond HERE!

ASSESSMENT – Once we have received your application, an underwriter will ask you to submit the following important requirements:

  • Proof of your financial capability
  • Your business’ history
  • Your credit score

To avoid any delay, make sure that your requirements are complete prior to submitting them.

ISSUANCE – After the prequalification process is done, you will be asked to sign an indemnity agreement. After that, the bond will be issued and sent to you!


California Contractor License Bond

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