Q. When did the Washington State pass legislature to increase the bond amounts for general and specialty contractors?
A. The law requiring higher bond amounts for GCs and specialty contractors passed on May 1, 2023. Effective July 1, 2024, the House passed a bill increasing the bond amount for general contractors from $12,000 to $30,000. Specialty contractors will see a bond increase from $6,000 to $15,000.
Q: Why did Washington State increase its bond amounts?
A: In raising its bond amounts, Washington State accounted for rising material and labor costs in construction to help ensure contractors could pay for potential losses that may occur. It’s been 22 years since the bond amounts have been increased.
Q. How does the new bond amount impact me?
A. As a new contractor, you must comply with this new regulation before a bond can be issued as part of the licensing requirements for Washington State. As an existing contractor, the increased bond amount will take effect when you renew your license.
Q. What steps should I take if my bond registration expires before July 1, 2024?
A. The bond increase only applies to license renewals after July 1. At renewal, the bond increase will apply.
Q. What happens if my registration is suspended after July 1, 2024, but I haven't yet had to renew under the new bond requirement?
A. Under the new requirement, if your registration is suspended on or after July 1, 2024, you must increase the bond amount to reinstate it.