For you to become a contractor in the state of California, there are specific procedures you have to follow. It is not a walk in the park. But once you succeed in the entire process of acquiring a California contractors license bond, you’ll then be qualified to have your license issued. I am going to present copious details regarding contractor license bond in California and later on shed more light on the terms and conditions to be followed to get contractor bond in the state of California. By the end of this article, you will understand the whole process and the requirements to get one.
Contractor License Bond in California
It is a surety bond that makes it easy for a contractor to run his/her business in the most convenient way possible without having issues with relevant authorities in California. This bond protects both your business and the individuals who need your services as a contractor. It is appropriate to have it so that you can effectively run your business in California.
Reasons as to why contractors require to have a bond in California
Relevant authorities in the state of California need a contractor to get a bond. The contractor bond has to be presented before the Contractors State License Board(CSLB) for it to be either scrutinized, officially issued or to reactivate the license.
Bonds are usually acquired for the most significant interests of clients who are charged fees for services which destroy as a result of either law violation or poor construction by the contractors. Moreover, bonds benefits employees who in one way or the other were mistreated (failed to get compensation) and they would intend to take a contractor to court for their unpaid dues. Also, contractor bonds ensure that contractors enhance moral integrity/code and observe ethics while serving their customers.
California Contractor Bond Requirements
The concerned authorities in the State of California require a contractor to observe specific procedures so that he/she can obtain a bond without difficulties. These requirements are not limited to the following.
• The contractor bond needs to be written through an organization licensed via the California Department of Insurance.
• The fees charged for the contractor bond has to be $15,000
• The CSLB’s headquarters office must get the contractor bond request within 90 days of the date the contractor bond is to go into effect.
• The Contractor bond has to be written on a form that is certified by the Office of the Attorney General.
• The Contractor bond must contain the signature of the Attorney General(for the surety company) to ensure things are in order.
• The companies identity name and the license number on the contractor bond has to correspond equally with the companies identity name and the license number on the Contractor State License Board’s records.
The fact is it can be tiresome when you want to obtain a contractor bond in California. Many people are always on long lines to be served in CSLB’s offices. You can hire a company to do the task for you at a fee, or you get someone on the board to make work more comfortable for you. You cannot access contractor bond in California unless you follow the requirements mentioned above.