Washington Contractors License Surety Bonds
When working on a contractor project in Washington state, it’s vital that all parties are on the same page when it comes to planning, strategy, and insurance. And it’s also very important to ensure there is a contractors license bond in place. A contractors license bond is a type of surety bond, which protects someone if work isn't completed by a contractor or if there are damages involved. But another factor of a contractor license bond is that it also helps others who are involved and impacted by unethical or costly choices within a business. Keep reading to learn more about the contractor registration process, how contractor surety bonds work in Washington, and other info about contractor insurance.
What is the purpose of this bond?A contractors license bond protected the following three parties: the contractor, the business who hired you, and the state bond issuing agency. When getting contractor license bonds, that means you’re ensuring that ethical and professional services will always be provided. Another factor is that these license bonds help to also protect the public by ensuring you and the company you’re working for will provide professional services and that no harm will be done to the public. If someone is negatively impacted or there is an unethical decision made, then a claim can be filed against the bond, which can result in financial compensation.
General and Specialty ContractorsNow that you know a little about how surety bonds work, including how contractors license bonds differ, we'll now talk about how they pertain to a general contractor and specialty contractors. If you’re a business that is modifying properties in Washington state, then you will need a Washington state contractor bond. While a general contractor is most common in the state, a specialty contractor also needs a license. These professionals provide services such as appliance work, closet services, door services, and much more.
Electrical and Telecommunications ContractorsAnother contractor position that needs a license bond is an electrical contractor. An electrical contractor bond in Washington works similarly to any other surgery bond. If something goes wrong during the electrical project, then the customer can file a claim for financial losses and damages against the bond. A telecommunications contractor is also common in Washington state. And just like all other contractors, a license bond is needed. However, it's important to note that these specialized licenses are harder to obtain compared to other licenses. This type of contractor license is the equivalent of a specialty contractors license, but getting one of these licenses means you can only work in telecommunications.
Washington Contractors License Bonds ExplainedA Washington contractor license bond is needed for any contractor work completed in the state of Washington. A license bond is used to protect the consumer in the event that the contracting work doesn’t go as planned. However, there are different contractors license bond amounts depending on the type of contractor you are, so be sure to do research to find the amount that pertains to your position.
Who needs to post a contractors license bond in Washington?Many different contractors must post a bond in Washington state. From general contractors to fire system sprinkler contractors, a bond must be obtained by the contractor. Take a look the different types of contractors that must get bonded in Washington state:
- General contractors
- Specialty contractors
- Electrical contractors
- Telecommunications contractors
- Structural pest inspectors
- Fire system sprinkler contractors
How much does a Washington contractors license bond cost?If you’re a contractor in need of a contractor license bond, then you may be wondering how much they cost. In Washington state, the cost of a license bond varies greatly from one position to the next. Take a look at the list below that labels the Washington state surety bond amount needed for the referencing contractor license type:
- General contractor: $12,000
- Speciality contractor: $6,000
- Electrical contractor: $4,000
- Fire sprinkler system contractor: $10,000
What does a contractors bond cover?Contractors bonds are essentially a promise from the surety company that the bonded contractor will comply with the conditions of the contractor license law in the state of Washington. If the contractor violates their terms, then there are grounds for disciplinary action. A claim can be made by the contractors employees, homeowners, any other person harmed by a willful and deliberate violation of a Washington construction contract, or an express fund damaged as a result of the contractors failure to pay fringe benefits for eligible employees.
How to apply for a Washington contractor license?Applying for a Washington contractors license is a pretty straightforward process. Here are the steps you’ll need to follow:
Be sure you need a licenseTo start the contractor registration section of the process, you’ll want to be 100% positive you need a contractors license in Washington. If your business does any of the following, then you’ll need a contractors license:
- Building, remodeling, or repairing property of structures. That includes roads, buildings, etc.
- Demolition/wrecking or transporting structures
- Building residential property of flipping houses