When California contractors apply for their license, they need to get a license surety bond. Keep reading for a rundown of the basics of getting your license and bond.
California contractor licensing
The Contractors State License Board, a division of the Department of Consumer Affairs, is the licensing entity for California contractors. If the cost of a contract is more than $500, a license is required to perform the contracting work. To be eligible for a license, applicants must meet the following criteria:
- At least 18 years old
- Possess a valid Social Security number or an Individual Taxpayer ID number
- At least four verifiable years of experience (within the previous 10 years) as a foreman, contractor, supervisor, or journeyman in the classification being applied for
Licensees do not have to be residents of California, and education may be counted as years of experience.�California contractors licenses are issued based on the kind of work the contractor will do, and contractors can add more than one classification to their license:
- Class A�general engineering contractors
- Class B�general building contractors
- Class C�specialty contractors
Specialty contractors choose from several areas of expertise, including concrete, drywall, roofing, and solar. Contractors that specialize in asbestos removal might be required to pass an exam.�The California Contractors License Law & Reference Book provides detailed information about this license and the classifications—get familiar with it before submitting your application.
Contractor bonds
A surety bond bond is a common requirement to obtain many licenses, including contractor licenses, across the U.S. And contractors often need several different surety bonds. In California, contractors need:
- $15,000 license bond (increased from $12,500 January 2016)
- $100,000 wage bond if applicant is an LLC
- $12,500 qualifying individual/qualifier bond (if applicable)
- $15,000-$150,000 disciplinary bond
The license bond protects consumers if the contractor breaks state law and consequently, the terms of the bond. The $100,000 wage bond for LLCs protects employees from nonpayment of wages. Qualifying individuals are the direct supervisors of operations and ensure the business is in compliance with the law at all times. Under some circumstances, California requires that person to be bonded. See the license application to find out if you will need that bond. The disciplinary bond may be required by the Board if the licensee has been disciplined in the past.
Ready to get your California contractors bond? Get in touch with Single Source Insurance today!