Surety bonds are a part of everyday life. Many individuals don’t understand the concept of bonds and how they are used to protect parties entering into a contract with one another. In basic terms a surety bonds are a binding legal agreement that offer financial guarantees to the parties involved in a multitude of contracts. ..
Tag: Performance Bond
Contract Bond Types Contractor License Bond: Purchasing a contractor license bond is almost always a requirement of contractors before they are licensed to work on construction projects. Depending on the laws within the state, county, city or even subdivision a contractor license bond could be required. Without the necessary contractor license bond in place the..
Looking for a professional contractor for commercial or residential construction projects can be all consuming. There are steps that need to be followed to ensure that the contractor you are hiring can meet the performance expectations while staying on time and within budget. In order to evaluate the contractor’s ability to accomplish this you must..
What exactly is the difference between a contractor that is licensed, one that is bonded and/or one that is insured? Competition in the construction industry is brutal. Wading through contractors to determine the most qualified individual at the most reasonable price leaves many consumers baffled. Where can consumers skimp and where shouldn’t they when it..
Surety bonds are contracts between a business, bonding company and third party. They are purchased by businesses to confirm the fiscal worthiness of a company as well as to offer affirmation on their reputation. If a business should fail to comply with a contract the bond acts as financial coverage to the third party. Obtaining..
The bonding process may seem like a paperwork inconvenience. The reality though is that without the financial support of bonds and the financial backing of surety bonding companies that often times the final result would not happen. This is why surety bonding is so important throughout construction process. Bonding ensures that all parties involved in..
When hiring a contractor there is a big difference between contractors that are insured, a contractor that is bonded or one that is both insured and bonded. Exactly what are those differences and how do they affect you as a homeowner? When a contractor is bonded and insured it offers an incentive for homeowners to..
If you are confused about hiring a contractor to do work around your home you are not alone. The terminology is a bit confusing, laws in each state are different and regulations are constantly changing which makes the whole process of hiring contractors to perform work on your home is difficult. Licensing within different trades..
Within the construction industry bonds are frequently used to help reinforce industry regulations and contractor/client relationships. Many of us outside the construction and bonding issue are at a loss when trying to understand the purpose of construction bonds as well as how they work to benefit each individual in the process. Don’t worry though because..
Surety bonds are often associated with insurance. This is understandable for a few reasons. Bonds provide coverage for losses that are incurred and are often sold by insurance agents. The difference however is that with surety bonds they must be noted where as regular insurance does not. In the article below we will discuss several..