Application Bonds – FRO vs Applicant

I’m sure that many of you are aware that the Construction Industry Licensing Board (CILB) has a black and white requirement regarding credit. If your FICO score is 660 or higher, you are good to go and nothing further is needed from you. If your score happens to be 659 or lower, you must secure a bond. The required bond amounts are:

• $20k for Division I (this can be cut in half to $10k if you take a 14-hour financial responsibility and stability course)
• $10k for Division II (this can be cut in half to $5k if you take a 14-hour financial responsibility and stability course)

Often times, it’s confused whether or not this bond is still required if there is a separate financially responsible officer (FRO) being appointed. The answer to this question is YES, the qualifier is still required to secure the bond if their credit is below 660, regardless of a separate FRO being appointed. In the event that an FRO is being appointed, the FRO is required to secure a $100k bond, which is separate from the bond that’s required from the qualifier if they fall below the 660 requirement.

The bottom line:

• Appointing a separate FRO does not alleviate the qualifier from bonding requirements if necessary
• There could be two bonds if the applicant does not take on the financial requirement depending on their credit score

If you have any additional questions regarding the bond requirements, please contact us at (239) 777-1028 and a member from our team will be happy to assist you.

Thank you!

Your Licenses, Etc. Team