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While all licensed California contractors are required to carry a $25,000 contractor license bond, certain contractor licenses may require a $25,000 Bond of Qualifying Individual, a $100,000 LLC Employee/Worker Bond, or a Disciplinary Bond depending on their license status.
Filing a Bond Claim If the contractor does not comply with the conditions of the bond, a claim can be filed with the surety company. The consumer will contact the surety directly to engage this process.
The Little Miller Act is a state-specific statute that acts as an extension of the federal Miller Act of 1935. The Miller Act states that all prime contractors on government construction projects are required to obtain bonds that guarantee both performance and payment for the invested parties.
If the surety does not voluntarily pay the claim, a lawsuit must be filed against the payment bond surety as follows: (a) if the public entity files a notice of completion or cessation notice, thirty (30) days six plus (6) months after the notice is filed or (b) if neither a notice of completion or cessation is filed, ...
Filing a Bond Claim The consumer will contact the surety directly to engage this process. Claims against a surety company may be filed by homeowners, any person damaged by a willful and deliberate violation of a construction contract or by employees damaged by the contractor's failure to pay wages.