LEGAL NOTICE:
By: Joseph M. Sweeney, Esq., Christopher J. Olson, Esq., Scott A. Mangum, Esq.,
William M. Kaufman, Esq. and M. Jonathan Robb, Jr., Esq.
In its recent Industry Bulletin CSLB #22-10, the Contractors State License Board (CSLB) reminded all licensees that the contractor’s bond amount is increasing to $25,000 on January 1, 2023:
CSLB first publicized this increase in December 2021. The increase is the result of Senate Bill 607, which was signed into law in 2021. The increase applies to:
- the contractor license bond (from $15,000 to $25,000) and
- the bond of qualifying individual (from $12,500 to $25,000).
CSLB distributed notices to 203 surety companies on September 28, 2022, with instructions for automatically increasing all licenses’ bonds and bonds of qualifying individuals currently on file with CSLB. If you are a licensed contractor, your surety company or broker should contact you soon to inform you of any changes to your bond premium.
You can also contact your surety company directly to ensure they have returned documentation to CSLB to increase your bond. If you know the name of your surety company, you can look up their contact information here. The name and contact information of your surety is also on your bond agreement itself or your broker can provide it. Questions about any increase to your bond premium must be directed to your broker or surety company and not CSLB.
Revised contractor bond and bond of qualifying individual forms with the new bond amounts will be available to the sureties in December 2022.
The increase occurred in part due to a license bond study that the CSLB conducted as required by Business and Professions Code section 7071.6. The study determined that the current $15,000 amount of the contractor bond is not sufficient and an increase may be necessary.
More information about bonds can be found on CSLB’s website or if you have specific concerns or questions, contact any one of our construction law group below.
For more information, or if you you have specific questions, please contact Joseph M. Sweeney, Esq., Christopher J. Olson, Esq., Scott A. Mangum, Esq., William M. Kaufman, Esq. and M. Jonathan Robb, Jr., Esq.
The information provided in this publication is general in nature and is not intended to answer every question that may arise under different fact situations and should not be relied on in the place of professional advice in a given case. If you have specific questions, please contact Sweeney Mason LLP.
SWEENEY MASON LLP is a Limited Liability Partnership located at 983 University Avenue, Suite 104C, Los Gatos, California, 95030, telephone (408) 356-3000. This "Legal Notice" is designed to assist our clients and other business owners in spotting issues which may result in costly litigation and court awarded damages if allowed to continue unaddressed.
SWEENEY MASON LLP’s philosophy is that by educating our clients, and other businesses, about their legal obligations, including changes in the law, we best serve our legal goal of minimizing or preventing expensive litigation.
Sweeney Mason LLP
983 University Ave, Suite 104C | Los Gatos, CA 95032 US
408.356.3000