Quick Facts:
- Regulating Agency: Washington State Department of Labor & Industries (L&I)
- Required Bond Amount: $30,000 for general contractors, $15,000 for specialty contractors
- Cost Range: $100-$900 annually (depending on credit)
- Required For: All registered contractors in Washington State
What Is a Washington Contractor License Bond?
A Washington contractor license bond is a surety bond that protects consumers, suppliers, and the public from financial harm caused by a contractor’s violations or failure to complete work. These bonds ensure that contractors comply with state contracting laws and ethical standards.
Who Regulates Washington Construction Contractor Licensing?
The Washington State Department of Labor & Industries (L&I) is the primary regulatory agency for contractor registration and bonding in Washington. L&I enforces the Contractor Registration Act (RCW 18.27) and will not issue a contractor license without proof of the required bond.
- Official site: Washington State Department of Labor & Industries
What Bond Amount Is Required in Washington?
Washington requires a $30,000 continuous surety bond for general contractors and a $15,000 continuous surety bond for specialty contractors. These amounts were increased in July 2024 (previously $12,000 for general and $6,000 for specialty contractors) to provide greater consumer protection.
Additional specialized bonds may be required depending on your trade:
- Electrical/Telecommunications Contractors: $4,000 bond
- Fire Sprinkler Contractors: $10,000 bond (Level 3 or “U”) or $6,000 bond (Level 1 or 2)
How Much Does a Contractor Bond Cost in Washington?
Contractors do not pay the full bond amount upfront. Instead, they pay an annual premium to a surety company. For qualified applicants with good credit, annual premiums typically range from 1% to 3% of the bond amount.
For a $30,000 general contractor bond, this translates to roughly $300-$900 per year, with some highly qualified contractors finding rates as low as 0.5% (around $150/year).
Contractors with credit challenges might pay higher rates, about 5%-10% (or more) of the bond amount – potentially $1,500+ annually if credit is poor.
Who Needs a Contractor License Bond in Washington?
The following contractor types need bonds in Washington:
- General Contractors – Broad construction contractors who can perform most types of work and hire subcontractors in multiple trades
- Specialty Contractors – Contractors limited to a specific trade or specialty (e.g., roofing, painting, HVAC, plumbing) who cannot hire subcontractors outside that specialty
- Electrical Contractors – Businesses licensed to perform electrical installation or maintenance work
- Telecommunications Contractors – Contractors licensed for low-voltage or telecom system work
- Fire Sprinkler System Contractors – Companies licensed to design/install fire protection sprinkler systems
What Other Contractor Bonds Are Required in Washington?
Many cities and counties in Washington have additional bond requirements for contractors operating in their jurisdiction, typically for work in public streets or utilities:
- City of Seattle: $30,000 Side Sewer Contractor bond for right-of-way work
- City of Spokane: $10,000 Street Obstruction bond
- City of Tacoma: $15,000 Right-of-Way bond for general street/utility work; $5,000 bond for minor street obstructions
- City of Vancouver: Right-of-Way permit bond set at 150% of project cost
- Other cities (e.g., Redmond): Various bonds for specific work types
How Does ContractorNerd’s Application Process Work?
Our streamlined application process makes getting your Washington contractor bond simple:
- Complete our quick online application
- Receive an instant quote based on your information
- Pay securely online
- Get your bond emailed to you, typically the same day
How Quickly Can I Purchase a Bond?
With our streamlined process, most contractors can receive their bond the same day they apply. Our online system offers immediate quotes, and once payment is complete, your bond will be issued electronically.
Who Files the Bond With the WA Once It Is Purchased?
After obtaining your bond, you must submit it to the appropriate regulatory agency:
- For state contractor registration, include the bond with your Contractor Registration Application to L&I
- For electrical/telecom contractor licenses, file the bond with L&I’s Electrical Section
- For city permits, deliver the bond to the city’s permitting office
Our team can guide you through the proper filing procedures to ensure your bond is correctly submitted.
How Are Claims Handled on a Washington Contractor Bond?
The bond provides financial recourse if a contractor breaches contract terms, performs negligent or improper work, or fails to pay workers, suppliers, or state taxes. It protects “all persons performing labor, furnishing material or renting equipment to the contractor,” as well as customers who suffer losses from defective work.
If a contractor fails to meet these obligations, a claim can be made against the bond to compensate the harmed party, and the contractor must then reimburse the surety for the payout.
Frequently Asked Questions (FAQ)
Can I get a bond with bad credit?
Yes. While credit score impacts bond rates, we work with contractors of all credit backgrounds. Those with credit challenges may pay higher premiums initially, but maintaining a claim-free history can help improve rates over time.
What are the penalties for not having a bond?
Operating without a proper bond in Washington can result in license suspension. If your bond is canceled or lapses, your contractor’s registration is automatically suspended until a new bond is in place.
How does the bond renewal process work?
Contractor bonds in Washington are continuous but have premium terms. Although the bond remains effective until canceled, if your premium isn’t paid, the surety will cancel the bond and notify L&I, causing license suspension. Most bonds have a 1-year premium term by default, though some sureties offer multi-year terms at a discount.
What’s the difference between a bond and insurance?
A bond primarily protects your customers and the public, ensuring you fulfill your obligations. Insurance (like general liability) primarily protects you and your business from claims. Washington contractors need both a bond and appropriate insurance coverage.
Ready to Get Your Washington Contractor License Bond?
[Apply Now]