Causes and How They Work

This section describes disciplinary bonds and the requirements pertaining to them. You may find it helpful to reference the Resources menu on the right for further information.

Following the suspension of a license for a violation of the Contractor's License Law, the firm must file a disciplinary bond with the Registrar, if the license is to be reinstated or reissued or if the firm seeks to have a new license issued. See Business & Professions Code Section 7071.8.

Disciplinary bonds are subject to the following requirements:

  • The bond must be filed in addition to, and cannot take the place of or be combined with, any other bonds required to maintain an active contractor's license;
  • The Registrar determines the bond amount, which is based on the seriousness of the violation(s). The amount may not be less than $25,000 , nor greater than ten times the amount of the contractor's bond. See Business & Professions Code Section 7071.8;
  • The bond must remain current and on file with the Registrar for at least two years. In some cases, the Registrar may require a longer filing period; and
  • The firm's license must remain active and current while the disciplinary bond is on file.