This disciplinary bond is required due to past delinquency on a license. In order to further protect the public, the CSLB will require this bond in addition to a general contractor's bond.
A contractor's license can be revoked due to a violation of Contractor's License Law. This disciplinary bond is required to reinstate or reissue the contractor's license.
The bond premium varies, depending on credit. With strong credit, the premium can be as low as 1-3% of the bond amount determined by the registrar. For non-standard credit, the premium can be 9% of that bond amount or higher.
To get a free bond quote for the Disciplinary bond, follow these steps:
California Contractors Disciplinary Bonds are a type of surety bond that is required for contractors that have had their license revoked due to a violation of the state’s contractor's license law.
These bonds are required by the California Contractors State License Board of the Department of Consumer Affairs (CSLB). They are put in place in addition to the standard contractor’s license bond required by all California contractors.
The purpose of the disciplinary bond is to ensure that the Principal adheres to the provisions of Section 7000 of the California Business and Professions Code.
According to Section 7071.8 of the California Business and Professions Code, the following people need to get a contractor’s disciplinary bond in the State of California:
The California Business & Professions Code 7071.8 states that the minimum amount needed for a California Contractors Disciplinary Bond is $15,000. The exact amount varies depending on the nature and severity of the contractor’s violation.
The California Registrar decides the penalty amount on a case-by-case basis. They also determine the length of the bond term.
After the Registrar determines the required amount for a disciplinary bond, how much you need to pay to get the bond is determined by the same factors impacting the cost of the standard contractor’s license bond.
The most important are your credit history, financial standing, and work experience. The surety company will review these qualifications before issuing you a premium for the bond.
Premiums for contractor’s disciplinary bonds can range from a few percent to over 10% for less qualified contractors.
South Coast Surety offers a quick and simple process for getting your California Contractors Disciplinary Bond. After you receive your required bond amount, please fill out the form and we will get back to you with a free quote.
When filling out the online application above, please include personal information for all owners who hold 10% or more of the corporation.
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