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License Bonds – Required by the Contractors State License Board to obtain and maintain your license. CSLB currently requires a bond for $12,500. The price for these bonds is determined by your personal credit score. Rates vary from under $300 for 3 years to over $2,000 for one year. Over the past few years, bond rates have increased ... sometimes substantially. We are happy to shop many different companies for you to get you the lowest rate possible.
Contract Bonds – Also know as Performance and Payment bonds. These guarantee that your work will be done on time, on budget, per the contract specifications; and that your employees, subcontractors and suppliers are paid. These bonds are usually required for Public Works or Commercial jobs.
Encroachment Bonds -- Required by municipalities if your work is encroaching on a public right of way, such as a sidewalk. These are relatively easy to issue if you have a good track record and good personal credit.
Subdivision Bonds -- Required by Municipalities to guarantee grading and other infrastructure components of a new building project.
Depending on the type of work and amount of the contract, it can take from a few hours to a week to obtain approval for Contract, Encroachment or Subdivision bonds. Give us a call and let us walk you through the process.
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