There are many different surety bonds for the state of California. Many can be purchased instantly by visiting our California State Surety Bond Page. Some of the most common surety bonds requested in California are below.
Construction in California has been booming. According to Statista, California will exceed $300 billion in annual construction in 2022 and that number is projected to increase in the coming years. Many of these projects are commercial construction. Commercial construction projects often require contract surety bonds such as Performance Bonds, Payment Bonds, Bid Bonds and Maintenance Bonds.
California Performance Bonds guarantee that a construction project in the state will be completed according to the contract and price. This bond protects owners and the public by ensuring that projects get build without going overbudget.
California Payment Bonds guarantee that certain subcontractors and material suppliers will be paid on California projects. This bond helps keep projects free of mechanic’s liens and gives subcontractors and material supplier confidence that they will be paid on the project.
California Bid Bonds guarantee that if a contractor is the low selected bidder, they will enter into a contract for the bid price. This protects projects by making sure the bidder does not back out of their bid or try to increase the price after bidding.
California Maintenance Bonds guarantee that a contractor will correct defective work and material for the maintenance or warranty period specified in the contract. This bond gives contractors an incentive to come back and correct defective work.
These bonds are also required when public or Federal money is involved in a project. because of The Miller Act. Therefore, contract surety bonds are some of the most frequent bonds written in the state.
Every contractor performing work in the state of California needs a contractor license and a California Contractor License Bond. These license bonds provide protection by ensuring that California contractors perform their work ethically and according to California Code. These California Contractor License Bonds are required to be in the amount of $25,000 and remain in effect for as long as the contractor maintains a license in the state. Because there are currently over $200,000 active contractor in California, these are one of the most common surety bonds written in the state. You can read more about California Contractor License Bonds.
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Auto Dealerships in California also need to be license and carry a California Auto Dealer License Bond. Under California Code 11710, all dealers must carry a $50,000 dealer license bond, except dealers that deal exclusively in motorcycles. Those dealers only need a $10,000 dealer bond. The bond protects the public by ensuring that the auto dealer upholds the conditions of their license and does not make any fraudulent misrepresentations. There are over 12,000 used car dealers, and more than 1,200 new car dealers in California, making these California Auto Dealer Bonds one of the most used surety bonds in the state.
Notaries in California are required to have a bond in the amount of $15,000 for the entire four years of their term as notary in the state. These notary bonds ensure that a California notary will follow the guidelines of their role as notary and provide some protection to the public if the notary does not. There are currently over 147,000 active notaries in California making this one of the most common surety bonds in the state. You can read all about California Notary Bonds.
California currently has more than 12,000 tax preparers according to the Bureau of Labor Statistics. In California, these tax preparers need surety bonds. California Tax Preparer Bonds protect the public from fraud and misrepresentation by the tax preparer. These bonds are required to be in the amount of $5,000 and carried by all tax preparers as outlined in California Code 22255. Because these bonds must be carried by all tax preparers, they are one of the most common surety bonds written in California. Read more about California Tax Preparer Bonds.
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There are many individuals and businesses in California that needs surety bonds. We have discussed some of the most common bonds but Axcess Surety with all surety bonds written in California. Many can be purchased online instantly. Contact our surety experts anytime for help obtaining your California Surety Bond. You may also visit our Surety Bond Guide to learn more about surety bonds including frequently asked questions.
Axcess Surety is the premier provider of surety bonds nationally. We work individuals and businesses across the country to provide the best surety bond programs at the best price.
