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Contractors bond form 13b 1 2025

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This document is a Contractor's Bond required by the State of California, specifically for contractors to comply with Business and Professions Code Sections 7071.5-7071.11. It outlines the obligations of the principal (contractor) and surety (bond issuer), including the bond amount of $12,500, conditions for cancellation, and claims procedures. The bond ensures compliance with licensing requirements and protects against damages resulting from the contractor's actions.

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How much does a $25,000 contractors bond cost?

Surety bond premiums are calculated as a small percentage of the bond amount. $25,000 surety bonds typically cost 0.510% of the bond amount, or $125$2,500. Highly qualified applicants with strong credit might pay just $125 to $250, while an individual with poor credit will receive a higher rate.

What is form 13b-1?

Form 13b-1 is designed to outline the rights and responsibilities between the Principle (the contractor), the Obligee (The State of California Contractors License Board) and the surety with regards to the provisions of the bond as outlined in Business and Professions Code 7071.5-7071.11.

How much is a contractors bond in California?

While all licensed California contractors are required to carry a $25,000 contractor license bond, certain contractor licenses may require a $25,000 Bond of Qualifying Individual, a $100,000 LLC Employee/Worker Bond, or a Disciplinary Bond depending on their license status.

What is a qualifying individual for the CSLB?

(a) A payment bond shall be in an amount not less than 100 percent of the total amount payable pursuant to the public works contract. The bond shall be in the form of a bond and not a deposit in lieu of a bond. The bond shall be executed by an admitted surety insurer.

What is a $25,000 contractors bond?

Contractors are required to file a $25,000 Contractor License bond with the California CSLB to maintain an active license. The bond protects the CSLB by transferring to a surety bond company the cost of damages to the public resulting from a licensed business breaking Californias Contractor License Law.