Effective January 1, 2016, the contractor’s licensing bond for California contractors, as required by Business & Professions Code section 7071.6, was increased from $12,000 to $15,000. Under section 7071.6, the bond must be in place before the Contractor’s State Licensing Board (“CSLB”) can issue an active license, reactive or inactive license, or renew an active license.

In California, the following are the requirements for a valid Contractor’s Licensing bond:

(a)              It must be written by a surety company licensed through the California Department of Insurance;

(b)             It must be in the amount of $15,000;

(c)              The business name and license number on the bond must correspond exactly with the business name and license number on the CSLB’s records;

(d)             It must have the signature of the attorney-in-fact for the surety;

(e)              It must be written on a form approved by the Attorney General’s office; and

(f)              It must be received at the CSLB’s headquarters office within 90 days of the effective date of the bond.


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