Effective January 1, 2016 California increases required bond amount to $15,000.
If you are in the construction business, then you realize having a contractor license bond is not optional. A contractor bond is an agreement with a surety company, which ensures a contractor is not going to do anything that will have them in violation with the contractors license laws in California. It helps to protect the contractor, and it can really be a great asset, not to mention the fact that it is illegal to do construction work without one! Why Bonds are Necessary Aside from the fact that it is illegal to work in the construction industry without an active bond, there are other reasons that you must consider a contractor’s license bond as well. First and foremost, you will find that the CSLB, or the Contractors State License Board, keeps a tab on all of the contractors. If you don’t have a bond, you will actually have your license suspended. This could cause delays in your projects and potentially cost you thousands of dollars. The bond will also help to protect you and help to ensure that you are in regulation with all of the codes and laws set forth by the State of California. Who Benefits From Having a Bond? According to the state of California, all contractors are required to have a bond. So, what if you are just doing a very small-scale project? Do you still need a bond?
California Contractors Bonds are Essential
It really just depends on the size of the job. If you do a lot of contract work, then yes a bond would definitely be for you. If you are going to be doing a job that isn’t valued over $500 when you factor in the materials and the labor, then you may not be required to have a bond. Chances are, if you are a contractor, you can benefit from the bond! Your potential customers will feel much more comfortable hiring a licensed contractor who is bonded and insured. Keeping Your Contractor License Bond Active Once your bond is in place you need to make sure that you renew it on time each and every time. You don’t want to stress out over your license being suspended because you were unable to get your bond renewed in time. Remember the date, and take care of it in advance so that you don’t have to continue to worry about it. It helps to work with a licensed insurance professional to ensure your coverage and renewal dates are reviewed on an annual basis. Are Bonds Cost Effective? The truth is, contractor license bond prices are based upon the licensees credit history. This can be really good news for contractors with excellent credit, but for those contractors with poor credit a bond can cost upwards of $1,300. If you have been worrying about your bond, then you will be relieved to know there are many payment plans available even for those contractors with bad credit. ContractorBondQuote.com specializes in providing competitive bond quotes to contractors with poor credit history. Give us a call for a free quote! If you have any questions of need help with your $15,000 Contractors License Bond please give us a ring! 1-800-409-7944