Washington
Contractor Bonds

Washington Contractor Bond License Guide

Washington requires contractors to obtain a contractor bond to become licensed. The amount for these bonds varies depending on the type of contractor, location, and project. Some of these bonds can be issued instantly online for a set premium or are prorated for the bond term’s end date.

Why are contractor bonds required in Washington?

Multiple counties and cities require contractors in Washington to post surety bonds prior to starting work. These bonds ensure the principal (contractor) will abide by all applicable rules and legislation outlining the classification-specific work, in addition to protecting consumers from damages caused by negligent or faulty work. Obligees (Washington government entities requiring the bond) place the liability on the principal.

Affected contractors can file a claim against the surety bond; if found to have validity, the surety (the company that financially backs the bond) will pay the claim up to the bond’s full amount. However, the principal is required to reimburse the surety in full for any money paid out.

Continuous Contractor’s Bond

Washington contractors must post a one-year term surety bond to become licensed to work. The bond amounts for contractors are $12,000 (general) and $6,000 (specialty); both amounts are underwritten, meaning a surety underwriter will check the applicant’s credit history to determine the cost.

General contractors are able to perform most kinds of construction work and can hire subcontractors with specialties in their business. Specialty contractors are only allowed to work within the specialty they are registered for.

To become a registered Washington contractor, applicants must submit the following requirements, along with their application:

• Register their business with the Department of Revenue

  • This includes creating a business name and receiving a valid Unified Business Identifier (UBI) number.

  • If the contractor wants to incorporate his or her business, he or she must contact the Secretary of State.

• Obtain general liability insurance policy with $200,000 public liability and $50,000 property damage coverage.

The application, along with the $117.90 licensing fee, must be sent to:

Contractor Registration

P.O. Box 44450

Olympia, WA 98504-4450

Continuous Plumbing Contractor Bond

Washington plumbers must post a $6,000 surety bond for a one-year term to become licensed to work. The bond is currently underwritten, meaning a surety underwriter will check the applicant’s credit history to determine the cost.

To become registered as a Washington plumber, applicants must submit the following requirements, along with their application:

• Obtain a certificate of liability insurance.

• Employ a designated plumber with a Department of Labor & Industries certification.

• Provide a certificate of liability insurance with a minimum of $170,000 (telecommunications only).

The application, along with the $139.10 licensing fee, must be mailed to:

Department of Labor & Industries

Plumber Licensing and Certification

P.O. Box 44470

Olympia, WA 98504-4470

Electrical/Telecommunications Contractor Bond

Electrical/Telecommunications contractors must post a $4,000 surety bond for a one-year term to become licensed to work in the state of Washington. Contractors can purchase this bond for a $110 premium.

To become registered as a Washington electrical or telecommunications contractor, applicants must submit the following requirements along with their application:

• Receive a valid Unified Business Identifier (UBI) number from the Department of Revenue.

• Obtain a certification as a master electrician or telecommunications administrator.

• Supply a worker’s compensation account for hiring new employees

• Provide a certificate of liability insurance with a minimum of $170,000 (telecommunications only).

The application, along with the $293.60 licensing fee and $44 administrator assignment fee, must be sent to the Department of Labor & Industries by mail.

Farm Labor Contractor Bond

Washington farm laborers must post a surety bond for a one-year term, expiring on December 31, to become licensed to work in the state. The bond is currently underwritten, meaning a surety underwriter will check the applicant’s credit history to determine the cost. Bond amounts will range from $5,000 to $20,000, depending on the number of employees within the business.

• $5,000 (1-10 employees)

• $10,000 (11-50 employees)

• $15,000 (51-100 employees)

• $20,000 (100+ employees)

To become registered as a Washington farm labor contractor, applicants must submit the following requirements, along with their application:

• Receive a business license and UBI number from the Department of Revenue.

• Submit Department of Revenue Tax Compliance and Employment Security Department Tax Compliance state certificates.

• Submit the Internal Revenue Service Tax Compliance Certificate and IRS Tax Information Authorization form.

• Provide proof of liability insurance, with the inclusion of all insured vehicles' make, model, and license plate number. The required coverage amounts are:

  • $100,000 liability per person

  • $500,000 liability per accident

  • $50,000 liability for property damage

The application, along with the $35 licensing fee, must be emailed to [email protected] and mailed to:

Department of Labor & Industries

Farm Labor Unit

P.O. Box 44510

Olympia, WA 98504-4510

Fire Sprinkler System Contractor License Bond

Washington fire sprinkler system contractors must post a surety bond for a one-year term to become licensed to work in the state. The bond is currently underwritten, meaning a surety underwriter will check the applicant’s credit history to determine the cost. Bond amounts will range from $6,000 to $10,000, depending on the fire sprinkler system contractor’s level.

• $6,000 (Level 1, 2, and I & T)

• $10,000 (Level 3 and U)

Each classification of fire sprinkler system contractors allows them to work within different structures:

• Level 1: Single- or dual-family-occupied residential structures and their underground fire service mains

• Level 2: Single- or dual-family-occupied residential and up to four story structures and their underground fire service mains

• Level 3: Any kind of structure and its underground fire service mains

• Level U: Only underground fire service mains of any structure

• Level I & T: Inspect and test work of a wet and dry pipe fire protection sprinkler system

To become registered as a Washington fire sprinkler system contractor, applicants must submit the following documentation, along with their application:

• Acquire a General Contractor license in Washington.

• Employ at least one person with a Certificate of Competency for the desired level.

• Submit the $100 application and an annual licensing pro-rated fee ranging from $100 to $1,500, depending on the level. These fees should be submitted AFTER the application has been approved.

Washington city-specific contractor bonds

Washington residents must post a surety bond with the city or town they are working in. More information on specific cities can be found below.

Clark County District 1 Electrical Contractor Performance Bond

Clark County District 1 requires electrical contractors to post a $5,000 surety bond to become registered within the town in Washington. A one-year term for this bond has a $100 premium cost. Applicants can contact the Clark Public Utilities Contractor Network to get more information on becoming an electrical contractor in the county.

Lakehaven Utility District Sewer Service Contractor Bond

Sewer service contractors are required by Lakehaven Utility District to obtain a surety bond to work. Sewer contractors must post a $10,000 contractor license bond for a two-year term. The bond’s cost is currently being underwritten, meaning the applicant’s credit history must be reviewed by a surety underwriter. Along with an application, applicants must submit contact references, a scheduled knowledge quiz, a Certificate Agreement and $1,000,000 Commercial General Liability, and a $409.45 application fee. There is a $129.30 annual renewal fee.

City of Redmond Side Sewer Contractor Bond

The City of Redmond side sewer contractors must post a $5,000 surety bond. The cost of the bond is a $100 premium; however, a 25% multi-year discount is available for customers who purchase this bond for a multiple-year term upfront. Contractors must also submit an application via e-mail to the Development Engineering Department.

City of Seattle Side Sewer Contractor Bond

Side sewer contractors in the City of Seattle must post a $30,000 surety bond for a one-year term. This bond’s cost is currently being underwritten, meaning the applicant’s credit history must be reviewed by a surety underwriter. Along with the application submitted on the Seattle Services Portal, applicants must provide a City of Seattle business license copy, Washington contractor’s license copy, an agreement form (with a $200 fee), and a Certificate of Insurance.

Visit SuretyBonds.com or call us at 1 (800) 308-4358 to talk to a representative to get started on securing your Washington bond today!