As a specialty contractor in the state of Washington, you’re responsible for diligently completing projects in your area of expertise. A surety bond shows your clients that you’re able to see a project through to completion, providing reassurance that you have good references and solid access to credit.
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What is a Specialty Contractor?
In Washington State, the Department of Labor and Industries defines a specialty contractor as someone who can perform one building trade or craft. The Department has a list of contractor specialties that you can examine to see whether you fit into the specialty category.
Each specialty contractor must provide a surety bond as part of their licensing requirement. This bond is for $6000 for a specialty contractor and is for a single trade.
The Process of Getting a Washington Specialty Contractor Bond
To get a specialty contractor license bond, you’ll need to connect with an agent who specializes in surety bond products. This agent will examine the diverse products that are available to you and will help you choose the one that is right for your business. To connect with an underwriter of a surety company and review your bonding needs, you’ll need to provide references, your credit history, and information about your ability to manage projects and access credit.
The cost of your bond will vary according to the amount of the posted bond and the rate you pay on that bond. Your rate changes depending on your financial and business history. A business with a strong history, good credit, and access to more credit will often get a lower rate than a new business or a business that has experienced financial challenges. Rates vary between 1 and 15 percent of the posted bond. Even if you are on the higher end, you can reduce your rate over time by showing that you are a successful business manager.
At Surety Solutions, A Gallagher Company, we work with diverse clients to meet their specific bonding needs. Whether you’re an experienced contractor or just starting out in the business, we’ll help you get the bond you need to pursue your specialty contractor license.