New Year, New Contractor’s Bond Amount Required in California

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UPDATE:  The California Contractors State License Board has confirmed that all currently licensed contractors contractor’s bonds must be increased to $15,000 by January 1, 2016.  Contractors Urged to Make Sure They Increase Bond Coverage to $15,000 Before End of Year; Applies to All Licensees, Industry Bulletin 15-14.

A California contractor’s bond is a requirement for the issuance of an active license, reactivation of a license, and for the maintenance of an actively renewed license. Effective January 1, 2016, the required amount of a contractor’s bond will increase from $12,500 to $15,000, as a result of California Senate Bill 467 (Hill). As a condition precedent to the issuance, reinstatement, reactivation, renewal, or continued maintenance of a license, SB 467 requires the Contractors State License Board to require the applicant and/or licensee to file or have on file a contractor’s bond in the sum of $15,000. Contractors should contact their bond agent or broker, or existing bond company for guidance on increasing their bond amount to comply with this new requirement. In addition, we expect the CSLB to provide further instructions on contractor’s compliance obligations in the coming months.

Additional Source:  CSLB, Bond Requirements