To be a contractor in the great state of California means that there are a variety of options open to your business enterprise. However, to do business in the state you are required to get a Contractor License Bond. It can be difficult and costly obtain without help. So, let’s explore the best way to get a contractor bond without paying excess money or waiting for a prolonged period of time.
What is a contractor license bond?
A license bond is a kind of surety bond that allows a contractor to operate their business. In a way, it protects the business but also the people that purchase the business’ services. Regardless it is necessary for the licensure of the business in order to operate inside California.
Why do contractors have to get a bond?
Contractors need to meet a certain set of criteria in order to obtain their state bond. It is necessary that a contractor’s bond has to be set in place before the Contractors State License Board or CSLB can issue or reactivate a license. The CSLB says that bonds are in the interest of customers who pay for services that result in damage or destruction due to poor construction or law violation. Bonds may also benefit employees who unfairly did not receive the compensation they are owed and wish to take legal action. However, there is also the implication that the company will operate by an ethical and moral code and not take advantage of their clients as well.
What are the requirements to get a bond?
The state requires the contractor to meet certain requirements to get a bond as well. They are:
- The business name and license number must be an exact match between the Contractor’s State License Board’s records and the bond.
- The bond requires the signature of the company attorney to ensure everything is in order.
- The form that the bond is requested on must be an Attorney General approved form.
- The Contractor’s State License Board must receive the bond request within 3 months of the date the bond is to go into effect.
- The amount of the bond must be $15,000.00 exactly.
- The bond has to be written through a company licensed through the California Department of Insurance
Meeting these requirements doesn’t mean that it will easy to get a bond. As it turns out there is a long line of people, especially in California, waiting to get their contractor’s bond. There are companies that assist with this process and can help facilitate this process at a much faster pace. Hiring one of these companies is going to require a little more money but the general consensus is that it’s worth it. The process can be long and drawn out and it’s totally worth it to skip a headache. In fact, the only way to get a bond faster than this is to know someone on the board.