Part of the corrective action for contractors who have violated Contractor’s License Law in California includes posting a Disciplinary Surety Bond. The bond amount will not be less than $15,000 and can be higher if the Contractor State License Board requires, as outlined in Business and Professional Code section 7071.8(b). California Disciplinary Contractor Surety Bonds cannot exceed ten times the amount of the contractor’s bond. The bond cannot take the place of, or be combined with any other bonds required to maintain an active contractor license. Contractors must maintain the Disciplinary Contractor Surety Bond for at least two years, but this can be longer in some cases depending on License Board requirements. Reinstatement/reissuance of the license may be granted once the surety bond has been submitted to the Contractor State License Board (CSLB). Contractors who would like to appeal any violation have 15 days from the time the CSLB has received the complaint to do so. These license and permit surety bonds serve as protection for future consumers who may be negatively affected if the contractor in question is granted approval to resume business in a particular jurisdiction. They also ensure that the employees of the contractor in question are paid the wages which they are owed, and that the contractor will abide by all applicable laws and regulations moving forward
Pacific Surety offers industry low rates and can obtain approvals for almost all credit situations. Once our simple application has been completed, we can have pricing to you within hours. If you have any specific questions, please contact our knowledgeable underwriting staff.