CA Law requires brokers of construction trucking services to post a minimum $15,000 surety bond in order to provide its services to any construction project.
The bond is conditioned on the payment of all sums due to any individual. The bond also secures the payment of claims of a contracted motor carrier of property in dump truck equipment if the broker failed to pay the carrier within the time period specified in existing law.
It is required that a “broker of construction trucking services”, as defined in Section 3322 of Civil Code, must hold a bond of not less than $15,000, executed by an admitted surety, prior to dispatching, hiring, contracting with, or otherwise engaging the services of any motor carrier of property in dump truck equipment.
The surety bond shall ensure the payment of the claims of a contracted motor carrier of property in dump truck equipment if the broker fails to pay the contracted motor carrier within the time period specified in Civil Code section 3322: “…by the 25th day following the last day of the calendar month in which the transportation was performed, if the charges, including all necessary documentation, are submitted by the fifth day following the last day of the calendar month in which the transportation was performed.”
A broker of construction trucking services who either fails to hold a bond or to provide written evidence of the bond as required would be guilty of a misdemeanor and subject to a fine in an amount not to exceed $5,000. Additionally, in legal actions brought by sub haulers to collect any payment owed to them by the broker, non-bonded brokers would be subject to a rebuttable presumption that the broker failed to pay the amount claimed by the sub hauler.
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