If you\u2019re a new contractor in California \u2013 whether you\u2019re looking to become a Class B general contractor or a Class C specialty contractor or anything in between \u2013 you need to know your bonds.<\/p>\n
In fact \u2013 at the very least, you\u2019ll need to have a contractor\u2019s bond to even get your CSLB contractor’s license.<\/p>\n
In this article, we\u2019ll cover all the basics for what bonds you need to start the year off with a shiny new contractor’s license. This article will only cover the essentials \u2013 if you want to deepen your understanding of bonds, check out our Comprehensive Guide to Bonds<\/a>.<\/p>\n What Is the Contractors State License Board?<\/strong><\/p>\n The Contractors State Licensing Board (CSLB) is responsible for all contractors\u2019 licenses in California. The CSLB handles all 300,000 contractors in the state of California \u2013 which is no small feat.<\/p>\n The CSLB\u2019s main job is to make sure that contractors meet safety and craftsmanship standards to protect consumers and businesses from bad actors. They do this via the CSLB contractor’s license, which ensures a common standard.<\/p>\n Contractors License Bonds<\/strong><\/p>\n In order to get your CSLB license, one must first meet the CSLB\u2019s bond requirements \u2013 which have actually just changed as of January 1 of this year.<\/a><\/p>\n The primary bond that all contractors \u2013 regardless of classification, trade, tenure, experience, age, or type of work \u2013 are required to have at all times is a contractor bond.<\/p>\n The bond guarantees that a contractor will adhere to all contractual obligations laid out in the contract. If the terms are not met due to the contractor\u2019s actions, the surety company covers the debts, up to the amount of the bond.<\/p>\n It\u2019s important to note that even with a contractor\u2019s bond, the contractor is ultimately responsible for repayment of the damages to the bond company. This bond is designed to protect homeowners against sketchy contractors by giving them at least enough money to cover most construction costs \u2013 although it\u2019s often not enough.<\/p>\n Thanks to Senate Bill 607<\/a>, as of January 1, 2023, the CSLB increased the principal bond limits for contractors from $12,500 or $15,000 to $25,000\u200b\u200b\u200b\u200b for all contractors.<\/p>\n A Word About Insurance<\/strong><\/p>\n It\u2019s important to note that the CSLB requires additional types of protective measures in the form of insurance.<\/p>\n Insurance operates differently from bonds \u2013 covering the amount without needing repayment from the contractor \u2013 but offers the same guarantee of payment in the case of an issue.<\/p>\n The CSLB requires one type of insurance in order to receive or renew your license: Workers\u2019 Compensation insurance<\/a>. There are exceptions to this rule, but it\u2019s de facto necessary.<\/p>\n Having bad credit can make obtaining a bond more challenging but not impossible \u2013 it\u2019s not like buying a house or other situation where you are raked over the coals and cooked until crispy.<\/p>\n On the contrary, the construction industry is filled with competent, good people who have bad credit. You\u2019d be lucky to find a job site without a good number of sub-600 credit scores.<\/p>\n That\u2019s why many surety bond companies offer bonds for applicants with less-than-perfect credit. The trade-off is that you pay a higher premium rate\u200b.<\/p>\n Visit our Comprehensive Bond Guide<\/a> for more information.<\/p>\n Bonds \u2013 specifically contractors bonds \u2013 are an essential part of the construction industry in California, creating a safety net for both individuals and businesses looking to get work done.<\/p>\n With a contractor bond, the client will receive some sort of compensation, so that they can at least come away with something in case they run across the small percentage of construction contractors who want to take advantage of people.<\/p>\n If you\u2019re a contractor, make sure you get your bonds from one of the CSLB\u2019s approved list of bond providers. The process should be quick, easy, and streamlined for anyone in the industry.<\/p>\n","protected":false},"excerpt":{"rendered":" If you\u2019re a new contractor in California \u2013 whether you\u2019re looking to become a Class B general contractor or a Class C specialty contractor or anything in between \u2013 you need to know your bonds. In fact \u2013 at the very least, you\u2019ll need to have a contractor\u2019s bond to even get your CSLB contractor’s … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":2749,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[221,220,124,71],"tags":[],"class_list":["post-2748","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction","category-contractor-business","category-contractor-jobs-2","category-cslb-news"],"_links":{"self":[{"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/posts\/2748","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/comments?post=2748"}],"version-history":[{"count":0,"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/posts\/2748\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/media\/2749"}],"wp:attachment":[{"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/media?parent=2748"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/categories?post=2748"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/contractorslicensingschools.com\/blog\/wp-json\/wp\/v2\/tags?post=2748"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Contractors State License Board Bond Requirements<\/h3>\n
The Main Types of CSLB Bonds<\/h3>\n
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Can You Get A Bond With Bad Credit?<\/h3>\n
Conclusion<\/h3>\n