California Contractor's Disciplinary Bond

CA Contractors Disciplinary Bond

What is a Contractors Disciplinary Bond?

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.

Who needs a Contractors Disciplinary Bond in California?

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:

  • A contractor whose license has been suspended or revoked due to disciplinary action.
  • An officer, director, manager, partner, or member of the personnel of record of a licensee who knows or participated in an act that caused the disciplinary action against the licensee.
  • A business entity, firm, or association of which an existing or new officer, director, manager, partner, qualifying person, or member of the personnel of record has had a license suspended or revoked as a result of disciplinary action.
  • A business entity, firm, or association of which a member of the personnel of record committed an act which causes for disciplinary action that has resulted in suspension or revocation of the license, and who had knowledge of or participated in the act or omission which was the cause for the disciplinary action.

How much does a disciplinary bond cost?

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.

Get your bond 

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.

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:
1. Gather your revoked license number or your new application fee number.
2. Complete the online application. You may also request a PDF application via email to apps@southcoastsurety.com