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
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