Keep your license active with the CSLB by carrying the state mandated $25,000 contractor’s license bond, and take on larger jobs with a bid, performance and payment bond
Contractors in California must post $25,000 surety bonds. By posting a contractor’s bond, principals (contractors) pledge to comply with the provisions of Division 3, Chapter 9 of the Business and Professions Code. The bond protects harmed parties from financial loss up to the full amount of the bond if the principal fails to comply with the letter of the law and the terms of the surety bond agreement. The principal must reimburse the surety for all damages paid out.
These bonds remain in full force and effect until canceled. The surety can cancel the bond in accordance with the provisions of Sections 996.310 of the Code of Civil Procedure.