The process of getting a contractor bond in California, like in any other state, may prove quite difficult if you do not know where and how to look. We shall look at some of the common procedures you will need to go through to secure the bond in California.
Step-1: Choose a Bond
There are many companies in California offering contractor bonds and a little homework will surely land you in the hands of the most competent.
Now, the first step in getting a contractor bond in California often involves choosing your most preferred bond type. It is important to note that these bond types qualify you for a certain amount, not to mention they cost differently depending on the Credit Score.
The following are the 4 types of contractor bonds you may be eligible for in California;
- Contractor’s License Bond – This bond qualifies you for up to $15 000 and with a credit score of 680 and up, its cost starts from $99. The cost ranges between $100-700 with a credit score between 679-600 and then settles at $700+ if your credit score is below 599.
- Contractor’s Disciplinary Bond – The bond amount you are entitled in this kind of bond varies and the following is the trend in terms of cost per credit score; 680 and up [starts at 1%], 679-600 [4-8%] and 599 or lower [over 10%].
- Qualifying Individual Bond – The Qualifying Individual Bond entitles you to a bond amount of $12 500 and with a credit score of 680 and up, the cost starts at $125. The cost is between $500 -1000 if your credit score is between 679 -600 and then shoots to 1250 or over if you have a credit score below 599.
- Farm Labor Contractor Bond – This is the last bond type you can get in California and the bond amount you are eligible for here is $25000. The cost begins at $250 with a credit score of 680 or over and then rises to $1000 -2000 with a credit score between 679 and 600. If you have a score of 599 or below, then it may cost you up to $2 5000 or over.
Step- 2: Enter Contact Information
The next step after identifying the type of bond you need is entering your contact information. This is the information that will enable the bond company to avail the required amount to you so it is important that you be as accurate and as detailed as possible when giving such information.
Step-3: Get a Quote
This is the last step and it basically involves the receipt of a free quote. The quote will be issued to you by the company and an ample time allowed so you can go through it and indeed ascertain whether it is favorable or not.