Contractor Bonds for Los Angeles — CSLB, Bid & Performance Bonds
From your $25,000 CSLB license bond to $50M+ performance bonds for LA Metro transit projects, we deliver surety solutions built for the Los Angeles construction market. Same-day bonds available for qualified contractors.
Los Angeles Bonding Requirements
LA's construction bonding environment spans CSLB state requirements, LADBS permit bonds, LA Metro infrastructure mandates, and county subdivision regulations.
CSLB License Bond Requirements
California's Contractors State License Board requires a $25,000 contractor license bond for all active licensees. This bond protects consumers against license law violations, poor workmanship, and contract abandonment. Los Angeles contractors face higher scrutiny due to the CSLB's Southern California enforcement unit — LA county leads the state in unlicensed activity complaints and bond claims.
LADBS Permit & Performance Bonds
The Los Angeles Department of Building and Safety requires performance and payment bonds for commercial projects exceeding $25,000. LADBS-permitted work on city-owned structures mandates 100% performance bonds and 100% payment bonds. The city's Bureau of Contract Administration verifies bond adequacy before issuing notice to proceed on any public works contract.
LA Metro & Public Works Bid Bonds
LA Metro's $40B+ transit expansion program requires 10% bid bonds on all projects over $5,000. Performance bonds at 100% of contract value and payment bonds at 100% are mandatory. The City of LA Bureau of Engineering requires identical bonding for street, sewer, and storm drain projects. Federal-aid projects add Miller Act compliance with prevailing wage bond requirements.
Subdivision & Grading Bonds
LA County requires subdivision improvement bonds (typically 100-150% of improvement costs) for tract development. Grading bonds cover site restoration if work is abandoned. The city's hillside grading ordinance (ZI-1966) imposes additional bonding for slopes exceeding 2:1 — a frequent requirement in the Hollywood Hills, Pacific Palisades, and Bel Air construction markets.
Bond Types for LA Contractors
Whether you need your initial CSLB license bond or bonding capacity for a $50M+ public works project, we structure surety programs that grow with your business.
- CSLB contractor license bond — $25,000 required for all active California contractor licenses
- Bid bonds — 10% of bid amount, required for LA Metro, LAUSD, and City of LA public works projects
- Performance bonds — 100% of contract value, guaranteeing project completion per contract specifications
- Payment bonds — 100% of contract value, protecting subcontractors, laborers, and material suppliers
- Subdivision improvement bonds — 100-150% of improvement costs for tract and lot-split development
- Grading bonds — site restoration guarantee required by LADBS for hillside and large-scale grading permits
- Encroachment bonds — required for work affecting public rights-of-way, sidewalks, and city infrastructure
- Disciplinary bonds — $15,000-$150,000 required by CSLB after license violations or consumer complaints
Real-World Bond Scenario
Koreatown Mixed-Use Development
A general contractor bid on a $4.2M mixed-use development in Koreatown requiring a 10% bid bond ($420,000), 100% performance bond ($4.2M), and 100% payment bond ($4.2M). The contractor's existing surety could only support $2M single-project limits due to limited financial history with large commercial projects.
We connected the contractor with a surety specializing in growing LA-area contractors. After reviewing 3 years of financial statements and a detailed project plan, the surety extended a $5M single-project limit — enabling the contractor to compete for the project and ultimately win the bid.
Program: $4.2M Bond Program
- • Bid bond (10%): $420,000 — premium $4,200
- • Performance bond (100%): $4,200,000 — premium $42,000
- • Payment bond (100%): $4,200,000 — included with performance bond
- • Annual CSLB license bond: $25,000 — premium $250
- • Total annual bonding cost: ~$46,450 (1.1% of contract value)
Proper surety relationships enabled the contractor to win a $4.2M project that would have been impossible with their previous bonding capacity — the bonding cost represented just 1.1% of contract value.
Contractor Bonds Resource Library
In-depth guides on contractor bonds for Los Angeles and California — from CSLB license bonds to building bonding capacity for major public works projects.
Los Angeles Contractor Bonds FAQ
How much does a contractor license bond cost in Los Angeles?
The CSLB $25,000 license bond typically costs $100-$500/year for contractors with good credit (700+ FICO). Contractors with credit challenges, recent claims, or CSLB disciplinary actions may pay 2-10% of the bond amount ($500-$2,500/year). We work with 50+ surety companies to find the lowest rate for your specific situation — including programs for contractors with credit scores as low as 500.
What bonds do I need for LA public works projects?
LA public works projects require three bonds: a bid bond (10% of bid amount), a performance bond (100% of contract value), and a payment bond (100% of contract value). Federal-aid projects add Miller Act compliance. LA Metro projects over $5,000 require all three. Your surety capacity (bonding limit) depends on your financial statements, work experience, and completion history — we help contractors build their bonding program from $500K to $50M+.
How do I increase my bonding capacity for larger LA projects?
Bonding capacity is determined by your financial statements (balance sheet strength and working capital), experience and track record (completed projects of similar scope), organizational capability (key personnel and equipment), and bank relationships. We work with sureties that specialize in growing contractors — helping you step up from $1M projects to $10M+ through structured financial planning and relationship building with your surety.
What happens if a bond claim is filed against me?
Unlike insurance, bonds are a credit instrument — you must repay the surety for any claims paid. When a claim is filed, the surety investigates the merits. Valid claims are paid to the claimant, and the surety seeks reimbursement from you. This is why bond claims affect your ability to get future bonds. We help contractors resolve disputes before they become claims and manage the claims process to protect your bonding relationships.
Can I get bonded with bad credit or a CSLB disciplinary action?
Yes, though options are more limited and premiums are higher. For the CSLB license bond, we have programs for contractors with credit scores down to 500. For bid/performance/payment bonds, credit-challenged contractors may need to provide collateral or use specialty surety programs. CSLB disciplinary bonds ($15,000-$150,000) are available through specialty markets. Contact us to discuss your specific situation.
Get Bonded for Your Next LA Construction Project
From CSLB license bonds to $50M+ performance bonds for LA Metro projects. Same-day bonds available for qualified contractors.