Contractor bond claims in Washington (2026):
how much you can recover and the steps
HOW MUCH CAN A HOMEOWNER RECOVER FROM A CONTRACTOR BOND IN WASHINGTON?
Every registered contractor in Washington carries a bond: $30,000 for a general contractor and $15,000 for a specialty contractor (RCW 18.27.040). To claim it, you sue in superior court within two years of the work being substantially completed or abandoned, and L&I serves the contractor and the bond company. Since July 1, 2026, L&I's Homeowner Recovery Fund can pay up to $25,000 more on some court judgments.
How much is in the bond
| Contractor type | Bond amount |
|---|---|
| General contractor | $30,000 |
| Specialty contractor (one trade, such as roofing) | $15,000 |
| L&I Homeowner Recovery Fund (separate) | up to $25,000 |
- The bond is a cap, not a guarantee. L&I says a bond suit "is only for the amount available in the surety bond." Other claims against the same contractor can use up part of it.
- Half is held for homeowners. Under RCW 18.27.040(5), claimants other than residential homeowners can't be paid more than half of the bond in total.
- Unregistered contractors have no bond. Look the contractor up on L&I's Verify a Contractor tool before you sign: it shows the registration, the bond company and the bond number.
The two-year deadline
A homeowner's breach-of-contract suit on the bond must be filed "within two years from the date the claimed contract work was substantially completed or abandoned," whichever comes first (RCW 18.27.040(3)). If the contractor walked off the job, the clock can start from that date.
Steps and fees
- 1. Put it in writing. L&I suggests first sending the contractor a written list of your complaints and what you need, with a deadline to respond. It also suggests mediation, which is usually cheaper than court.
- 2. File in superior court. L&I doesn't supply forms. You file a summons and complaint in the county where the work was done, naming the bond company as a defendant with the bond number.
- 3. Pay the filing fee. L&I puts the court's filing fee at about $200.
- 4. Serve through L&I. Mail three copies and a $66.20 check to L&I Contractor Registration by certified or registered mail. L&I serves the contractor and the bond company.
- 5. After the judgment. Send L&I a copy of the judgment or settlement within 10 days.
| Fee | Amount |
|---|---|
| Superior court filing fee | about $200 |
| L&I service fee | $66.20 |
| Process server for the contractor directly (optional) | varies |
The Homeowner Recovery Fund
If the bond doesn't cover your loss, L&I's Homeowner Recovery Fund can pay up to $25,000, depending on available funds. When money runs short, applicants go on a waitlist. The fund is paid for by penalties on unregistered and non-compliant contractors, according to L&I as reported by the Building Industry Association of Washington.
- Your home: you own and live in it; a single-family home or a building with four or fewer units. Condominiums are excluded.
- Your contractor: registered with L&I when the work was done.
- A court judgment: a final superior court judgment against the contractor, ordered after July 1, 2026, and an attempt to recover from the bond.
- 90 days: apply within 90 days after the court case ends. L&I says review takes about 14 business days, and you sign your judgment rights over to L&I before payment.
Before you hire a contractor
- Check registration and the bond on L&I's Verify a Contractor tool. A specialty contractor's bond is half a general contractor's.
- For a job of $1,000 or more on your home, the contractor must give you a written disclosure statement before work starts (RCW 18.27.114). Without it, the contractor can't bring a lien claim: see construction liens in Washington.
- Get the price, scope and schedule in writing. See how to read a roofing estimate for what a clear estimate lists, and sales tax on home repairs for the tax line.
- Planning an addition or remodel? File for the home improvement property tax exemption before the work is finished.
Frequently asked questions
How much is a contractor bond in Washington?
$30,000 for a general contractor and $15,000 for a specialty contractor, under RCW 18.27.040. These amounts apply to registrations and renewals from July 1, 2024.
How long do I have to file a claim against a contractor's bond?
For a homeowner's breach-of-contract claim, two years from the date the work was substantially completed or abandoned, under RCW 18.27.040(3).
Does L&I pay contractor bond claims?
No. You sue in superior court and L&I serves the contractor and the bond company for a $66.20 fee. After that, L&I's role is keeping the record.
What if the bond isn't enough?
Since July 1, 2026, L&I's Homeowner Recovery Fund can pay up to $25,000 to owner-occupants with a superior court judgment against a registered contractor, if they apply within 90 days after the case ends and funds are available.
Can I claim the bond of an unregistered contractor?
An unregistered contractor has no registration bond on file with L&I, and the Homeowner Recovery Fund only covers work by registered contractors. Check registration before you hire.
Sources
- RCW 18.27.040 — Bond or other security required
- L&I — Filing a lawsuit against a contractor's bond
- L&I — Homeowner Recovery Fund and fact sheet F625-120-000 (June 2026)
- Washington Legislature — 2SHB 1534 final bill report (2023)
- BIAW — New Homeowner Recovery Program launches July 1, 2026 (May 4, 2026); L&I — Hiring a contractor
All sources accessed November 8, 2026.
This guide summarizes Washington law and L&I information. It is not legal advice, and court rules and fees change. For your situation, talk to a Washington attorney or L&I's Contractor Registration program. See our disclosure and disclaimer.