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

Splitting a project permit across two or more permits to circumvent this requirement shall not be allowed.

3. Secure your labor compliance bond or irrevocable standby letter of credit

Use a bond issuer with an AM Best Issuer Credit Rating of bbb- or better (Good, Excellent, Superior, or Exceptional) or a letter of credit issuer with an S&P, Moody’s, Fitch or Bauer Financial ratings of BBB-, Baa3, BBB-, 3 Stars or better, respectively.

The labor compliance bond or irrevocable standby letter of credit 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
San Francisco, CA 94102
View location on google maps

5. Acknowledgement Form

Once the bond is posted and permit is issued, an Acknowledgement Form must be signed, scanned, and submitted by Project Owner and all Covered Contractors with any required attachments to the Office of Labor Standards Enforcement at OLSE.laborbond@sfgov.org.

6. Request the release of the bond

To request release of the bond, no sooner than 90 days after the final Certificate of Completion and Occupancy or an amended Certificate of Completion and Occupancy, first the Project Owner and all Covered Contactors must sign, scan, and submit the Certification Form with any required attachments to the Office of Labor Standards Enforcement at OLSE.laborbond@sfgov.org.

7. Bond will be released

Provided all documents are complete and there are not open labor investigations by the Office of Labor Standards Enforcement or the State Division of Labor Standards Enforcement on a project, the bond will be released.

About the Residential Construction Wage Theft Prevention Ordinance (RCWTPO)

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 September 22, 2022