Contractors License Bond In Washington

Contractors License Bond In Washington
03/14/2018

Contractors License Bond In Washington

The Washington Department of Labor and Industries requires the Contractors License Bond in Washington to be bonded before they can be licensed to work within the state. Electrical/telecommunications contractors must post $4,000 bonds, specialty contractors must post $6,000 bonds and general contractors must post $12,000 bonds. Fire sprinkler system contractors must post $10,000 surety bonds. The required amounts of farm labor contractor bonds and continuous contractor bonds vary on a case-by-case basis. Applicants should verify their required bond amount with the state prior to bonding.

Side sewer contractors in Milton, Washington, must post $5,000 surety bonds, while side sewer contractors in Seattle must post $30,000 surety bonds.

Right of way contractors in various cities must also be bonded.

Electrical/Telecommunications Contractor Bonds

By posting an electrical/telecommunications Contractor License Bond in Washington, principals (electrical/telecommunications contractors) pledge to pay for all labor, including employee benefits and materials furnished or used upon the work, all taxes and contributions due to the state and all damages sustained by any person, firm, corporation or other entity that become due to the state as a result of the principal’s failure to complete installations or maintenance in accordance with any applicable ordinance, building code or regulation of a city or town pursuant to RCW 19.28.010(3). If the principals fails to comply with these terms, the surety will cover resulting damages up to the full bond amount, and the principal must reimburse the surety for all damages paid out.

Applicants must know the business entity type (sole proprietorship, partnership or corporation) when applying for this bond.

Washington electrical/telecommunications contractor bonds remain continuous until canceled by the surety. The surety can cancel the bond by giving written notice of cancellation to the license holder/principal and to the Department of Labor and Industries Electrical Section 45 days prior to the effective cancellation date.

Contractor License Bonds and Continuous Contractor Bonds

The Washington Contractor’s Registration Act (RCW 18.27) requires electrical, specialty, general and continuous contractors to post surety bonds to legally work within the state. These bonds are put in place to ensure that principals (contractors) do the following:

  • pay all wages and benefits to any person furnishing labor to him or her
  • pay all amounts that become due as a result of the principal’s breach of contract including negligent or improper work in the conduct of contracting business
  • pay any person who furnishes labor or materials or who rents or supplies equipment to the principal
  • pay all taxes and contributions due to the state
  • generally comply with the rules and regulations of RCW 18.27.040

Continuous contractor bonds in Washington remain continuous until canceled by the surety. The surety can cancel the bond at any time by giving written notice of its intent to cancel to the Director of Labor and Industries. A cancellation or revocation of the bond or withdrawal of the surety from the bond suspends the registration issued to the registrant until a new bond or reinstatement notice has been filed and approved.

Whichever contractors license bond you are in need of, All Commercials Surety (ACS Bonds) has the most competitive prices and knowledgeable, friendly agents to assist you – click here to apply.

 

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