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By Contractors For Contractors!
  Construction Bonds and Bonding

Before you can have your license activated you will probably be required to purchase a bond, commonly known as a LICENSE bond, with a minimum value (our minimum was $10,000 in 1995 so I can imagine it's significantly more now).

This bond that you are required to purchase basically gives your customer one more pocket to reach into when and if you do not perform as your contract(s) states, and your customer wins a lawsuit against you.

The bond company you choose will provide proof of your purchase to the License Board and at that time you will pay your fee of $150 to have your license activated.A nice thing about the bond requirement is that once you have purchased your bond, you will use the same bond for all additional classifications you add to your license.

Two exceptions to this rule are: 1) If the additional classification(s) is used to start an additional company in which case, an additional bond is required and 2) If the additional classification(s) is roofing and/or pool contracting in which case, a higher bond of $10,000 is required.
It is a good idea to check out several different bonding companies until you find one you are comfortable with. We use Southern California Insurance Brokerage for our bonding and insurance needs. Always inquire as to what the 'rating' of the bond company is. There are several different ratings such as: A++; A+; A; A-; B+; B; B-; etc. These ratings are assigned by a company named A.M. Best, and the ratings indicate the past (and present) performance of the bonding company.

Thank you for visiting. I hope that this article has helped you! If you've got a couple minutes, could I ask you please to use the link right below here to tell me what I can do to make this page more helpful to you and others? It'd be a great help if you can. :) Thank you!

How are we doing with our - construction surety bonds - page?

When you get there, it'll say Download-Construction-Forms.com - Don't worry, that's another one of my sites. =)

We have many more articles pertaining to business available by clicking here. Have a great day! Diane


Back to the top of this page: Construction License Bonds

To my page about General Liability Insurance

Back to my home page: TheContractorsgroup.com


 

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Please note that Southern California Insurance Brokerage covers California projects only.

Please tell them that TheContractorsGroup sent you. I don't currently earn a commission for referrals or sales, but I do love it everytime they're told that they're quoting someone that I sent their way. =)


"This site is an obvious tool that anyone in construction should be using."
James Farmer Canoga Park, California
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Click Here!!


 

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