• The first step requires you to complete a lengthy questionnaire.
• Anticipate a couple of weeks for final approval, after you've answered all the questions.
• Approval is based on your credit history, equity you have in improved real estate in California, especially your home.
• The closer the first bid bond amount is to the sum of your assets, the more likely the bond will be issued for you.
• After the first bond has been satisfactorily completed, the next bond will be easier and, usually the company will be willing to cover a higher amount.

The amount of bond required can often be negotiated. EXAMPLE: Even though a contract may be for $200,000, contractors are paid as certain stages are completed. Sometimes they might accept a $50,000 bond instead of the full $200,000.

If a claim against your bond is paid, it will be both expensive and difficult for you to obtain future coverage for at least three years, whether you repay the bond company or not.

Click here to request information regarding performance or bid bonds