California requires all contractors to obtain a California Contractor License Bond before they get licensed. It protects consumers, employees, and the CSLB by providing financial recourse for damages that licensing violations or contractual failures may cause. It ensures compliance, safeguards against substandard work, and secures employee wages and benefits.
This guide will walk you through the requirements, costs, and application process for contractor license bonds in California.
California Contractor License Bond Requirements
A California Contractor License Bond is required by the California Contractors State License Board (CSLB). CSLB oversees about 239,000 contractors in 45 different licensing classifications as of January 2025.
Every contractor or contractor-qualifying individual must file a $25,000 CSLB surety bond to obtain or maintain their licensed status.
Companies structured as Limited Liability Companies (LLC) will need to post an additional $100,000 LLC Employee Worker Bond.
If any contractors have their license revoked for violating the Contractors' License Law, they must file a disciplinary bond to reinstate their license with the CSLB.
To meet the CLSB requirements for a Contractor License Bond, contractors must:
- Ensure the bond is issued by a company licensed to operate in California.
- Renew the bond annually or as required to obtain and maintain an active contractor's license with the CSLB.
Failure to maintain an active bond can result in license suspension or penalties.
Bryant Surety Bonds can help you get any California contractor license bond you need. Complete our online application form to get a free instant quote.
How Much Does a California Contractor License Bond Cost?
The cost of a California Contractor License Bond depends on several factors. Individual CSLB or qualifying individual license bond premiums typically range between $250 and $750 per year (1-3% of the bond amount) for applicants with good credit.
Factors influencing the bond cost are:
- Credit score
- Financial history
- Fixed and liquid assets
- Experience in the industry
| License Type | Bond Amount | Bond Premium |
|---|---|---|
| Contractor License Bond | $25,000 | Starting from $250 |
| Qualifying Individual Contractor Bond | $25,000 | Starting from $250 |
| LLC Employee Worker Bond | $100,000 | Starting from $1,000 |
| Farm Labor Contractor Bond | $25,000 | Starting from $250 |
| Contractor Disciplinary Bond | Varies | Varies |
| Foreign Labor Contractor Bond | $1,000-$100,000 | $100-$1,000 |
| City of Palos Verdes Estates Contractor Bond | $10,000-$20,000 | $100-$200 |
| City of Los Angeles Subdivision Labor and Material Payment Bond | $1,000-$100,000 | $100-$1,000 |
| City of Los Angeles Excavation Bond | $1-$200,000 | Up to $2,000 |
| City of Los Angeles Import/Export Street Use Payment Bond | $1,000-$1,500,000 | $100-$15,000 |
| City of Los Angeles Tree Replacement and Relocation Bond | $1,000-$100,000 | $100-$1,000 |
| Tulare County Encroachment Bond | $5,000-$25,000 | Varies |
| City of Los Angeles Sewer/Storm Drain Connection Bond | $10,000-$100,000 | $100-$1,000 |
| City of San Francisco Street Excavation Bond | $25,000 | Starting from $250 |
| City of Sunnyvale Maintenance Bond | $1,000-$500,000 | $100-$5,000 |
| City of Escondido Guarantee and Warranty of Improvements Bond
(Bond amount is 10% of the faithful performance bond) |
$1,000-$100,000 | $100-$1,000 |
| City of Pacifica Encroachment Permit Bond | $1-$100,000 | Up to $1,000 |
| City of Escondido Material and Labor Bond
(Bond shall not be less than 50% of the total estimated price) |
$1,000-$100,000 | $100-$1,000 |
| City of Palmdale Performance and Payment Bond | $1,000-$100,000 | $100-$1,000 |
| City of Santa Ana Public Improvements Bond | $1,000-$300,000 | $100-$3,000 |
| City of Vista Landscaping and Irrigation Bond | $1,000-$100,000 | $100-$1,000 |
| City of Westminster Labor and Materials Bond | $1,000-$100,000 | $100-$1,000 |
| Sacramento Suburban Water District Encroachment Permit and Maintenance Bond | $25,000 | Starting from $250 |
| City of Beverly Hills Demolition Bond | $1,000-$100,000 | $100-$1,000 |
| City of Fremont Labor and Material Bond | $1,000-$100,000 | $100-$1,000 |
| City of Fresno Streetwork and Excavation Bond | $25,000 | Starting from $250 |
| City of Pomona Labor and Material Payment Bond | $1,000-$100,000 | $100-$1,000 |
| City of Pomona Warranty and Maintenance Bond | $1,000-$100,000 | $100-$1,000 |
| City of San Clemente Labor and Materials Bond | $1,000-$100,000 | $100-$1,000 |
| Department of Real Estate Subdivision Bond | $1,000-$100,000 | $100-$1,000 |
| Department of Transportation Payment Bond | $1,000-$500,000 | $100-$5,000 |
| Rowland Water District Contractor Payment Bond | $1,000-$500,000 | $100-$5,000 |
| Contra Costa County Well Driller Performance Bond | $5,000 | Starting from $100 |
| San Luis Obispo County Well Driller Bond | $25,000 | Starting from $250 |
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Get a free exact quote Get another estimateHow to Get a California Contractor License Bond
First, you will need to apply for your CLSB license. This license enables individuals and businesses to work in various classifications in California. It ensures that all contractors meet the necessary qualifications to operate within their field, including proper education and bond coverage.
Follow these steps to apply for a CSLB contractor license:
- Determine the appropriate contractor licensing classification for your business:
- Class A: General Engineering Contractor
- Class B: General Building Contractor
- Class B-2: Residential Remodeling Contractor
- Class C: Specialty Contractor (Roofing, Plumbing, etc.)
- Complete the Application for Original Contractor License online.
- Pay the required application fees and pass all necessary exams.
After your application is accepted, the CSLB will provide instructions for completing the fingerprinting requirements.
Once you are licensed, you can get your California Contractor License Bond:
- Submit your application, including details such as your license classification, company name, company address, application fee number (new applicants only), and license number (renewal applicants only).
- Receive a personalized bond premium quote based on several factors we’ve outlined above.
- Once approved, you'll receive your bond, which your surety provider will file directly with the CSLB on your behalf. Contractors do not file their own surety bonds with the CSLB.
FAQs
1. Can I apply for a California Contractor License Bond with bad credit?
Applicants with bad credit can also get bonded though at slightly higher rates. Check out our bad credit program at Bryant Surety Bonds for more information.
2. What happens if a claim is filed against my bond?
Claims can be filed against a contractor bond for non-compliance with contractual agreements, violations of the California Business and Professions Code, and damages caused to clients or third parties. In this case, contractors are responsible for reimbursing the bonding company for valid claims.
3. How long does it take to get a CSLB surety bond?
Usually, it is different with every surety company because they require an underwriting process to calculate your California contractor license bond premium. However, with Bryant Surety Bonds you can get your contractor license bond on the same day.
4. What other types of surety bonds are required of contractors in California?
For specific projects, you might also require a bid bond, payment bond, performance bond, or another type of contract bond.
Additional Resources
- California CSLB: Forms and Applications
- California CSLB: Laws and Regulations
- California CSLB: Office Locations
- For any licensing questions to the CSLB, call 1-800-321-CSLB (2752) - open 24/7.
- For any bond questions for the CSLB, you can email [email protected].
