Navigating the contractor licensing process in Washington State starts with understanding the importance of the Washington Contractor License bond. Whether you’re launching a new construction business or renewing your credentials, this guide provides step-by-step instructions on registering as a contractor, including detailed information on how to secure your required license bond. 

You’ll learn about the most up-to-date bond amounts, recent regulatory changes, and your options for purchasing a Washington contractor license bond. We’ll also point you to the official forms and documentation you’ll need for a smooth application process, ensuring you remain compliant and ready to take on new projects across Washington. 

Does Washington Require a Contractor’s License?

Contractors in Washington are required to register and obtain a license with the Department of Labor & Industries (L&I). State law also mandates that construction contractors be bonded and insured to safeguard the public.

Importance of Washington Contractor Bonds

A Washington Contractor Bond demonstrates a contractor’s ability to perform projects, adhere to building codes, and ensure workplace safety. Additionally, it meets compliance requirements and instills confidence in clients and stakeholders, knowing that the contractor has the skills, knowledge, and ethical standards to complete construction projects effectively and ethically. 

Washington Contractor Bond Requirements

The state of Washington has a well-defined contractor licensing system and bond requirements, overseen by the Department of Labor and Industries, which plays a key role in ensuring that contractors working in the state adhere to proper standards for safety, professionalism, and ethical business practices.

Who Needs a Washington Contractor License Bond?

In Washington, contractors are required to file a surety bond as part of their license registration process with the L&I. This includes general contractors, who must post a $30,000 bond, and specialty contractors, who must post a $15,000 bond.

In certain trade categories, the bond amounts are lower. For example, the bond amount for plumbers is $6,000, while for electrical and telecommunications, it’s $4,000. Farm labor contractors are required to post a bond of $5,000 to $20,000, depending on the number of employees.

Types of Washington Contractor Bonds

There are two principal Washington Contractor Bonds to meet licensing requirements with the Department of Labor & Industries:

  • General Building Contractor: This category encompasses various types of contractors and is suitable for businesses that plan to demolish, construct, repair, or remodel. General contractors have the flexibility to subcontract work as needed.
  • Specialty Contractor: This bond covers contractors who work within their designated specialty. The L&I oversees 63 specialties, including roofing, painting, HVAC, tree removal, mobile home installation, and many more.

How to Get a Washington Contractor License Bond

You can apply for your Washington contractor license bond by submitting an online request form. 

Application Process

  • Decide on your business structure and name: sole proprietor or partnership, and obtain a Uniform Business Identifier (UBI). If you are starting a business that is incorporated, such as an LLC or Corporation, contact the Secretary of State or a private attorney to incorporate your business. If you are unsure about the type of business structure you want, visit business.wa.gov for more information on starting and structuring your business.
  • Purchase your surety bond and insurance:
    • $30,000 for general contractors
    • $15,000 for specialty contractors
    • General Liability insurance policy in the amount of: $200,000 in public liability and $50,000 property damage, or $250,000 combined single limit
    • Workers’ Compensation insurance if you have employees; Washington is a monopolistic state for Workers' Compensation insurance, therefore, employers must purchase coverage through the state-run L&I
  • Complete the Application for Contractor Registration (F625-001-000) with notarized signatures. There are separate departments that handle electrical and plumbing licenses. Note: Different types of contracting work will also require training and certifications to ensure you meet the state’s requirements. For example, plumbers and electricians require master certification.
  • Pay the required application fee of $141.10 to the Department of Labor & Industries.

Additional ways to register

You can mail your completed, signed, and notarized Application for Contractor Registration (F625-001-000) to the address below, along with appropriate documentation to:

Contractor Registration
P.O. BOX 44450
Olympia, WA 98504-4450

Required Documentation

Ensure you send the required documentation along with your application:

  • Your Social Security number or federal employee ID number
  • The UBI number from the Department of Revenue
  • Completed business structure registration
  • Your Continuous Contractor’s Surety Bond (F625-003-000)
  • Certificate of insurance for General Liability coverage 
  • Proof of Workers’ Compensation insurance

Washington Contractor License Bond Cost

The cost of a Contractor License Bond in Washington is typically 1% to 5% of the bond amount. You can obtain a bond with CCIS Bonds. 

Factors Affecting Washington Contractor Bond Pricing

Several factors influence the cost of a Washington contractor bond. The contractor’s credit score plays a significant role, as surety companies use it to gauge financial reliability and risk. A strong credit typically means a lower premium. The bond amount required by the state, which differs by license type, directly affects the total cost. Other considerations include a contractor’s business experience, claims history, and record of compliance with licensing laws. Contractors with solid credit and a clean history typically qualify for better rates than those with previous violations or limited experience.

Maintaining and Renewing Your Washington Contractor Bond

When it’s time to renew your contractor registration (typically every two years), you’ll need to ensure that your bond (and any other required securities) remains valid and on file with the L&I. 

The license renewal may be completed online, by mail, or in person. If your bond has changed (e.g., you changed surety companies or ownership), you must submit the updated bond before renewing your registration. 

Failing to have a valid bond—and proof of it—can delay or deny your license renewal, and working without proper registration can lead to serious penalties.

Frequently Asked Questions About Washington Contractor License Bonds

Does CCIS offer a Washington Contractor License Bond with General Liability or other insurance policies?

Yes, CCIS Bonds offers Contractor License Bonds, Bid, Performance, & Payment Bonds, as well as other Surety Bonds in addition to General Liability and other insurance coverages.

Will CCIS Bonds remind me when it's time to renew my Washington contractor license bond?

In Washington State, Contractor License Bonds are continuous, meaning they remain in effect as long as the premium is paid and the bond is not canceled.

Note: Please review all applicable state laws and regulations or consult with your legal professional concerning your compliance as to your business operations.