File a labor compliance bond for your residential construction project

Owners of projects that create 10 or more residential units must secure a labor compliance bond.

What to do

1. Check if you need to file the labor compliance bond

You must file this bond if your project:

  • Is considered Residential Group R
  • Will construct, enlarge, alter, repair, improve , or convert a building (or part of a building)
  • Creates or adds 10 or more residential or sleeping units

You do not have to file the bond if the project is residential development subject to any of the following:

  • Local, state, or federal prevailing wage requirements
  • A valid Project Labor Agreement
  • A valid Community Workforce Agreement

2. Refer to labor compliance bond requirements

The minimum bond requirements depends on your project cost:

  • Up to a $5 million project, secure a minimum $500,000 bond
  • $5 million to $7.5 million project, secure a minimum $750,000 bond
  • Between $7.5 million and $10 million project, secure a minimum $1 million bond
  • More than $10 million project, secure a minimum $1.25 million bond

3. Secure your labor compliance bond

Use a bond issuer with an AM Best Issuer Credit Rating of bbb or better (Good, Excellent, Superior, or Exceptional).

The bond must:

  • Name the City as exclusive beneficiary
  • Include conditions that require the Owner holding the Bond to comply fully with all provisions of the RCWTO and acknowledge that the Bond or portions thereof may become payable to the City, to be used to satisfy a determination of violation of a City labor protection for work on the Project, under the conditions set forth in Police Code Section 3300O.5(d)

4. File the labor compliance bond with the Controller’s Office

You can mail the bond or deliver it in-person.

Controller's Office

City Hall
1 Dr Carlton B. Goodlett Place
Room 316 or Room 396
San Francisco, CA 94102
View location on google maps
About the Residential Construction Wage Theft Ordinance (RCWTO)

In May of 2022, the City approved a new law to ensure construction workers receive their full wage. Read FAQs from the SF Controller about the bond requirements.

Last updated August 4, 2022