What is a Washington Contractor License Bond?

Learn about this important contractor license requirement in Washington today!

Washington Contractor License Bond

In the State of Washington, contractors are required to post a bond upon registration to the Department of Labor and Industries. Also, individual municipalities require the contractor to secure a bond upon application for a municipal contractor’s license or before the start of the construction project that the contractor has been awarded. This essential prerequisite is stated in Chapter 18.27.040 of the Revised Code of Washington.


What is the bond amount?

General Contractor – $12,000

Specialty Contractor – $6,000

If you have an excellent credit score, you may be eligible to pay a very low bond premium!

Find out you need to pay for this bond today! Get your FREE quote here!


What are the bond conditions?

  • The bond is a tripartite agreement between the following:
  1. Principal – The Contractor
  2. Obligee – the State of Washington
  3. Surety – the surety bond company that will issue the bond
  • The bond should be issued by a surety bond company that is authorized to do business in Washington such as Surety Bond Authority
  • The bond should be made payable to the State of Washington
  • The Principal/License Applicant should comply with all the provisions of Chapter 18.27 of the Revised Code of Washington and all the other rules and regulations that govern Contractors in Washington
  • The Principal agrees to pay the following:
  • Construction laborers and their employee benefits
  • Taxes and contributions due to the State of Washington
  • All persons furnishing material or renting or supplying equipment to the contractor
  • In case of breach of contract or a valid violation that includes improper work, the aggrieved party or the State of Washington will be eligible to file a claim on the bond
  • The bond will not be impaired even if the business name or business entity is changed so long as one of the original bond applicants is part of the business covered by the bond
  • If the Principal, previous registration of a corporate officer, owner, or partner of a current applicant has had three final judgments in actions involving a residential single-family dwelling on two or more different structures in the past five years, the Director of the Department of Labor and Industries may increase the bond amount up to three times of the average required amount.
  • The bond will remain valid until canceled


How can I obtain this type of bond?

STEP 1: Apply for the bond

You need to submit a bond application to us. If you’re ready to apply now, you may do so here!

STEP 2: Underwriting

We will ask you for a couple of relevant information needed for the bond. This will include your financial history, job performance history, and your credit score. An underwriter will carefully evaluate all those.

STEP 3: Bond execution

Once the underwriter is done with the underwriting process, we will immediately issue the bond and send it to you!


Ready to start on your bond? Contact us today!

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