Washington Contractor Bonds

In Washington, contractors must post a continuous surety bond with the Department of Labor & Industries (L&I) to register and legally operate. This bond serves as a financial guarantee that the contractor will uphold state laws, follow ethical contracting practices, and honor commitments to clients, laborers, suppliers, and taxing authorities. It helps protect the public from financial harm caused by contract breaches, substandard work, or unpaid wages.

As of July 1, 2024, bonding requirements were significantly increased to reinforce consumer protection:

• General Contractors: $30,000 surety bond (up from $12,000)
• Specialty Contractors: $15,000 surety bond (up from $6,000)

These updated amounts must be met by both first-time applicants and contractors renewing their registrations; L&I will not issue or renew licenses without valid bonding in place.

See FAQ's for more information

Performance bonds are used to guarantee the performance of a contract. Project owners use these bonds to ensure projects are completed on time and on budget. They are required on all federally funded projects as well as most other publicly funded contracts valued at $150,000 or more.Payment bonds are used to guarantee the suppliers of material and labor are paid. Just like performance bonds, these bonds are required on all federally funded projects as well as most other publicly funded contracts valued at $150,000 or more. Payment surety bonds are more often than not issued alongside performance bonds.Bid bonds are used as a guarantee that a contractor is able and willing to enter into a contract. A bid bond also guarantees the contractor can and will secure a performance bond and/or a payment bond for the awarded contract. These bonds ensure only serious contractors submit legitimate bid proposals.

License and Permit Bonds are required by a municipality or other public body as a condition to granting a license or permit to engage in a specified activity, this bond guarantees that the party seeking the license or permit (the obligor) will follow applicable laws or regulations.

While there are too many License & Permit bonds to list, here are a few of the popular ones:

• WA (Seattle) Sewer Contractor
• WA (Vancouver) Street Excavation
• WA Fire Sprinkler Contractor
• WA (Seattle) Public Place Shoring/Excavation

Don't see your bond listed? Go ahead and fill out a bond form and in the notes field, let us know what type of bond you are in need of.

*Forms can be found under Quotes in the Navigation Bar*