California Contractors Disciplinary Bond

Get An Instant Quote on California Contractors Disciplinary Bond Now

California Contractors Disciplinary Bond

If a contractor’s license is revoked in California for the reason of a breach of the Contractors License Law, the California Business and Professions Code section 7071.8 mandates that the contractor ought to submit a California Contractors Disciplinary Bond in order to reinstate their ability to work in the state.

It is required explicitly by state form 13B-3, which is also formally known as the Contractor’s Disciplinary Bond, that the bonded contractor must comply with California Business and Professions Code Chapter 9 Division 3, which is also commonly referred to as the Contractors State License Law. This section of the code governs licensing requirements for contractors in the state.

The Contractors State License Board of the California Department of Consumer Affairs (CSLB) mandates that you get the California Contractors Disciplinary Bond in order to do business. They are implemented in addition to the regular contractor’s license bond, which is required of all contractors operating in the state of California.

To guarantee that the principal complies with the requirements outlined in Section 7000 of the California Business and Professions Code, the disciplinary bond will serve as a form of financial security.


Contractors who have had their contractor’s license suspended as a result of disciplinary action are required by California BPC 7071.8 to secure a California Contractors Disciplinary Bond with a maximum amount ranging from $15,000 to $150,000. This bond must be paid within 30 days after the suspension of the contractor’s license. In order to guarantee that contractors participate in morally sound methods of doing business, the legislature of California developed licensing rules and regulations. In addition to that, in order for suspended contractors to have their licenses reinstated, they will be required to provide the disciplinary surety bond.

In the state of California, contractors who have had their license suspended as a consequence of disciplinary action are required to purchase the California Contractors Disciplinary Bond in order to have their contractor’s license restored. This is the case even if the license was suspended for a minor infraction.

If the contractor does not comply with the licensing rules, the California Contractors Disciplinary Bond guarantees that the public will be compensated for any financial damage that results from the contractor’s actions. In addition to the standard consumer protection of $15,000 offered by contractors’ licensing bonds, the bond offers extra protection for customers.

Bond Amount

Surety Bond-California Contractors Disciplinary Bond Bond Amount

According to section 7071.8 of the Business and Professions Code in California, the least amount of money that must be included in the California Contractors Disciplinary Bond is $15,000. The precise sum is going to change based on the kind of infraction that the contractor committed as well as how severe it was.

The amount of the fine is determined on a case-by-case basis by the Registrar of Vehicles in California. They are also responsible for deciding how long the bond term will be.

Following the registrar’s determination of the minimum amount necessary for a disciplinary bond, the amount of money you will need to pay in order to get the bond will be based on the same elements that determine the cost of the normal contractor’s license bond.

Your employment experience, current financial status, as well as credit history are the most significant aspects to consider. Before they provide you a quote for the premium on the bond, the surety business is going to go through these credentials.

The premiums for disciplinary bonds for contractors might vary anywhere from a few percent to over ten percent for those contractors who are less competent.

Frequently Asked Questions

How Do I Go About Applying for a California Contractors Disciplinary Bond?

Online applications are accepted around the clock for the California Contractors Disciplinary Bond.

In What Kinds of Circumstances Could Disciplinary Measures Be Used Against California Contractors?

The Consumer Services and Business Bureau (CSLB) has the right to take disciplinary action in the event of any infringement of licensing rules and regulations. The following instances are the most prevalent triggers for the use of disciplinary measures: Sloppy work or breaches of the building code. Utilization of advertising that is dishonest, misleading, or deceitful. The failure to restore any and all of the harm done to the property of the homeowners. Participating in fraudulent activities or enabling representatives of the company to participate in fraudulent activities. Violation of payment obligations to workers, subcontractors, or suppliers.

What Exactly Is It That the California Contractors Disciplinary Bond Protects?

A prior infraction on a license necessitates the posting of the California Contractors Disciplinary Bond as a requirement. In addition to requiring a general contractor's bond, the CSLB will need this bond in order to further ensure the safety of the general public.
Scroll to Top