Directed surety occurs when owners designate a specific producer or surety company from which contractors must obtain surety bonds for a specific project or series of projects.

Who prohibits directed suretyship?

  • The federal government prohibits directed suretyship on federal projects.
  • 42 states have statutory prohibitions against directed suretyship.

The state Anti-Directed Surety Statute citation is shown below. A version of this resource in chart form is available here.

Cal. Gov. Code § 4420 (a)*

*Cal. Gov. Code § 4420.5 (a) Section 4420 does not apply to any construction or renovation project undertaken by a school district or community college district.

For more information, contact Larry LeClair.

Topic
Advocacy
Publish Date
November 5, 2024
Region
California
Audience
Agents, Contractors, Owners, Sureties
Resource Type
Anti-Directed Surety Statutes, Resource Map