What is a surety bond?

A surety bond is a promise by a bonding company to pay all or a portion of a CCB Final Order if a contractor fails to pay the order. The purpose of the bond is consumer protection. A property owner can file a CCB complaint against a contractor for breach of contract or improper work. If the CCB orders a contractor to pay money to the complainant, the contractor must pay as ordered. If the contractor does not do so, the bonding company will pay the money owed up to the amount of the bond. The CCB requires contractors to carry surety bonds. The amount of the bond is determined by the contractor’s license endorsement.