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Licensing

California Contractor Bond Requirements by City

The $25,000 CSLB license bond is statewide and uniform, so it does not change from city to city. Here is what stays the same everywhere, and the local permit bonds that actually vary.

Illustration for the guide: California Contractor Bond Requirements by City

The license bond is the same statewide

California sets the contractor license bond in state law, not by city. Under BPC §7071.6, every CSLB-licensed contractor carries the same $25,000 license bond, whether you work in Los Angeles, Fresno, San Diego, or a town of two thousand people. The amount, the form, and the filing are identical statewide.

So the short answer is no: your CSLB license bond requirement does not change when you cross a city line. A contractor in one city and a contractor in another post the exact same bond.

What actually varies by city

What changes locally is not the license bond. It is the permit and encroachment bonds a city or county can require before it lets you perform specific work, usually work that touches public property or the public right-of-way. These are set by the local agency, not the CSLB, so the rules, amounts, and forms differ from one jurisdiction to the next.

Because a city sets these, always confirm the exact bond, amount, and form with the local building or public works department that issues your permit.

Examples of local bonds

  • Encroachment bond. Required to work in the public right-of-way, such as a sidewalk, curb, or parkway fronting a job.
  • Street cut or excavation bond. Guarantees you restore the pavement after cutting into a public street for a utility tie-in or trench.
  • Grading bond. Backs a grading permit so the site is finished and stabilized to the approved plan.
  • Demolition bond. Some cities require it before issuing a demolition permit, covering safe teardown and site cleanup.

You will not need all of these. Which ones apply depends on the job and the city, which is exactly why the local permit desk is the source of truth. Our permit bond requirements guide walks through how they work.

Find your city and your bonds

Start with the statewide bond every contractor needs, then layer on anything local. We place the contractor license bond in every California market, and we write the local permit and encroachment bonds on top of it. Browse bonds by location to find your city, or send us the permit and we will tell you exactly what it calls for. Underwriting still applies, and tougher credit is welcome.

Questions

FAQs

Reviewed by Michael Melshenker, CEO. Updated June 2026.

Do contractor bond requirements change from city to city in California?
No. The $25,000 CSLB license bond is set by state law under BPC §7071.6 and is identical in every city. Only local permit and encroachment bonds vary by jurisdiction.
Does Los Angeles require a different contractor license bond than other cities?
No. The state license bond is the same everywhere. A city like Los Angeles may separately require permit or encroachment bonds for work in the public right-of-way, but those are local permit requirements, not a different license bond.
What is an encroachment bond?
It is a local bond a city or county requires before you work in the public right-of-way, such as a sidewalk or street. It guarantees you restore public property, and the amount is set by that jurisdiction. Confirm the exact bond with the permit desk.
Do I need a separate license bond for every city I work in?
No. One state license bond covers you statewide. You only add a local permit or encroachment bond when a specific city requires it for a specific job, and we can place those alongside your license bond.