How to File a Claim Against a Contractor Bond in Washington

Short Answer: A Washington bond claim is a lawsuit in superior court against the contractor and its bond, served through L&I. Residential homeowners must file within two years of substantial completion or abandonment.

Quick Facts

If a registered Washington contractor breaches your contract, for example by abandoning the job or doing improper work, the contractor’s surety bond is one place to recover money. It is a legal process with firm deadlines. This guide follows RCW 18.27.040 and L&I’s published guidance; it is general information, not legal advice, and it is worth speaking to a Washington attorney before you file.

Before You File: Try to Resolve It

Courts and sureties expect you to have tried to fix the problem. Before filing:

1. Put your complaint in writing to the contractor, describing the defects or unfinished work and the remedy you want.
2. Give a reasonable deadline to respond.
3. Keep copies of the contract, change orders, payments, photos, messages and any expert opinions.

Some sureties will investigate and settle a claim without a lawsuit if you contact them with documentation. That can be faster, but it does not stop the legal deadline running.

Step 1: Check the Bond and Existing Lawsuits

Look up the contractor on L&I Verify. It shows the surety company, bond number and amount, and lawsuits already filed against the bond. If several suits are open, the bond may not cover everyone. Background on amounts is in Washington Contractor Bond Requirements.

Note the bond that was in effect when you contracted; contractors sometimes change sureties.

Step 2: File in Superior Court on Time

The bond action is filed as a summons and complaint in the superior court of the county where the work was done, or another county with jurisdiction. The surety must be named as a party along with the contractor.

Missing the deadline ends the bond claim, so diarise it the day problems begin.

Step 3: Serve L&I

Service on the surety is made through the department. Under RCW 18.27.040, you send L&I three copies of the summons and complaint and the required service fee by registered or certified mail. Service is not complete until L&I receives both. L&I then forwards the papers to the surety and contractor. Check L&I’s current instructions for the fee amount and mailing address before sending.

Watch out: Incomplete service is a common reason bond claims fail. Follow the department’s instructions exactly and keep the mailing receipts.

Step 4: The Case Proceeds

The case then follows normal court procedure. The surety may settle, defend the case, or the matter may go to judgment. If you prevail in a residential homeowner breach-of-contract action, the court may award costs, interest and reasonable attorneys’ fees.

Step 5: Payment Order If Claims Exceed the Bond

When claims exceed the bond, RCW 18.27.040 sets the order:

1. Employee labor and employee benefits.
2. Breach-of-contract claims by a party to the construction contract (such as a homeowner).
3. Registered or licensed subcontractors, material suppliers and equipment renters.
4. State taxes and contributions.
5. Costs and attorneys’ fees.

Claimants other than residential homeowners can receive at most half of the bond.

Step 6: Report the Result to L&I

The prevailing party must send L&I a certified copy of the judgment, or settlement documents, within 10 days of resolution so the department can update the record.

Step 7: Consider the Homeowner Recovery Fund

Since July 1, 2026, owner-occupants of single-family homes or buildings of four or fewer units (not condominiums) who hold a final, unsatisfied judgment from a bond claim against a registered contractor can apply to L&I’s Homeowner Recovery Fund. Payment covers actual damages after bond recovery, up to $25,000 per contractor per parcel, and depends on available funds. Apply within 90 days after the court case ends, with a certified copy of the judgment and proof of residency. Our guide to the Washington Homeowner Recovery Fund has the details.

Alternatives and Parallel Options

• Small claims court against the contractor directly, for smaller amounts within the court’s limit.
• A regular civil suit against the contractor for amounts above the bond.
• The contractor’s liability insurer, if the problem is accidental damage rather than poor workmanship.
• A consumer complaint to the Attorney General’s informal resolution service, covered in How to File a Complaint Against a Contractor in Washington.

Evidence That Makes a Claim Stronger

• A signed contract with a clear scope and price.
• Written change orders.
• Proof of every payment.
• Dated photos before, during and after.
• Independent inspection or repair estimates.
• Written communication showing you asked for the work to be fixed.

Why Registration Matters Before You Ever Need This

A bond claim only exists if your contractor was registered with a bond on file. Unregistered contractors have no bond and are not covered by the Homeowner Recovery Fund. Checking registration before you hire is what keeps these remedies available.

Key Terms

• Surety: the bonding company that issued the contractor’s bond.
• Summons and complaint: the papers that start a lawsuit.
• Service: formally delivering those papers; for bond claims, through L&I.
• Substantial completion: the point at which the work is complete enough to use for its intended purpose.
• Judgment: the court’s final decision on the claim.
• Unsatisfied judgment: a judgment that has not been fully paid.

A Worked Example Timeline

A homeowner’s contractor abandons a remodel in March. The homeowner writes to the contractor in March and April, gets repair estimates in May, and contacts the surety with documentation in June. When the surety does not resolve the claim, the homeowner files in superior court in September, well inside the two-year limit, and serves L&I with three copies and the fee. The case settles the following spring, and the homeowner sends L&I the settlement documents within 10 days.