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California Contractors Bond Increases to $15,000


California contractors should be aware that beginning January 1, 2016, the cost of a Contractor’s license bond increases from $12,500 to $15,000. After December 31, 2015, the Contractors State License Board (“CSLB”) will not process bonds or cash deposits of $12,500 and the license will be inactive. In California it is illegal for an unlicensed person to perform contracting work on any project valued at $500 or more in combined labor and material costs.

According to the CSLB, the requirements for a contractor’s bond are as follows:

  • The bond must be written by a surety company licensed through the California Department of Insurance.
  • The bond must be in the amount of $15,000 as of January 1, 2016.
  • The business name and license number on the bond must correspond exactly with the business name and license number on the CSLB's records.
  • The bond must have the signature of the attorney-in-fact for the surety company.
  • The bond must be written on a form approved by the Attorney General's Office.
  • The bond must be received at the CSLB's Headquarters Office within 90 days of the effective date of the bond.

Contractors should contact their surety or bonding agent to ensure their bonding information meets state requirements. If searching for an agent, check out bond/surety companies and insurance agents in our BCA directory.

Before you pay, check BCA!

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About Business Consumer Alliance

Business Consumer Alliance (BCA) is a non-profit company that started in 1928. The broad purpose of BCA is to promote business self-regulation. BCA's mission is achieved by assisting consumers in resolving complaints with businesses and using that complaint information, along with other relevant information such as customer reviews, to forecast business reliability. With community support, BCA can identify trustworthy and ethical businesses and warn the public to avoid unscrupulous businesses whose purpose is to defraud the marketplace. BCA also helps businesses promote themselves by providing services and tools to protect their business and reach out to their customers. BCA obtains its funding from member businesses who support the mission and purpose of the organization and who agree to abide by high standards of ethical business practices.