Contractor Bonds
From the mandatory CSLB license bond to performance bonds for your next big project — we've got you covered with fast, competitive bonding solutions.
CSLB Contractor's License Bond
This is the foundational bond required to obtain and maintain an active contractor license. CSLB cannot issue, reactivate, or renew a license without it — it's a strict licensing condition, not something tied to a specific job.
It must be written by a CA-licensed surety and match the business name and license number on file. The current amount is $25,000 (raised from $15,000 under SB 607, effective January 1, 2023).
Who it protects: the public and employees — not the contractor. If a licensee violates licensing law, an injured party can file a claim, and the contractor must reimburse the surety.
Bottom line: this bond is what keeps a license "active," regardless of what jobs the contractor is working.
Quick Facts
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Amount: $25,000
Updated from $15,000 under SB 607 (effective Jan 1, 2023)
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Required By: State Law (B&P Code §7071.6)
Mandatory for all licensed contractors in California
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Issued By: CA-Licensed Surety
Must match the business name and license number on file
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Protects: Consumers & Employees
Covers license law violations, defective work, and unpaid wages
When Is It Required?
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Federal Projects
Mandatory on all federal construction projects
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CA Public Works ≥ $150,000
Required on most California public works projects above this threshold
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Large Private Projects
Increasingly common, often paired with a payment bond to guarantee subs and suppliers get paid
Performance Bond
Not a state licensing requirement — this is a contract-specific bond a project owner or GC requires before work starts on a particular job.
It guarantees the contractor will complete the project per the contract terms. If they default or fail to perform, the surety covers the cost of completing the work — often up to 100% of contract value.
Bottom line: bonding capacity — how large a project a contractor can get bonded for — can limit which jobs they're eligible to bid. Building strong surety relationships is key to growing your business.
LLC Employee/Worker Bond
Applies only to contractors organized as an LLC. Because an LLC limits personal liability for owners, the state requires extra worker protection: LLCs must file this $100,000 bond on top of the standard $25,000 CSLB bond — totaling $125,000 in required bonding.
Who it protects: LLC employees, if the company fails to pay wages, benefits, or other compensation owed.
Like the standard CSLB bond, it's a licensing prerequisite (not project-specific) and must stay current or the license risks suspension.
Quick Facts
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Amount: $100,000
In addition to the standard $25,000 CSLB bond
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Required By: State Law (B&P Code §7071.6.5)
Mandatory for LLC-structured contractors only
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Protects: LLC Employees
Covers unpaid wages, benefits, and compensation
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Licensing Prerequisite
Must stay current or license risks suspension
Bond Comparison at a Glance
A quick overview of the three bond types every California contractor should know.
| Bond Type | Amount | Purpose | Required By | Applies To |
|---|---|---|---|---|
| CSLB Contractor's License Bond | $25,000 | Protects consumers/employees from license law violations, defective work, unpaid wages | State Law (B&P Code §7071.6) | All licensed contractors |
| Performance Bond | Up to 100% of contract | Guarantees project completion per contract terms | Project Owner / GC (contract-specific) | Public works ≥$150K, large private projects |
| LLC Employee/Worker Bond | $100,000 | Protects LLC employees from unpaid wages/benefits | State Law (B&P Code §7071.6.5) | LLC-structured contractors only |
CSLB Contractor's License Bond
$25,000Purpose: Protects consumers/employees from license law violations, defective work, unpaid wages
Required By: State Law (B&P Code §7071.6)
Applies To: All licensed contractors
Performance Bond
Up to 100%Purpose: Guarantees project completion per contract terms
Required By: Project Owner / GC (contract-specific)
Applies To: Public works ≥$150K, large private projects
LLC Employee/Worker Bond
$100,000Purpose: Protects LLC employees from unpaid wages/benefits
Required By: State Law (B&P Code §7071.6.5)
Applies To: LLC-structured contractors only