There are many things to think about when undertaking a construction project. There are many people involved in every project and each person has some investment in the outcome of the project. Also, there is a great deal of money tied up in construction projects. First, there are permits that have to be acquired, materials to be bought, contractors to hire, crew and additional professionals to hire, equipment to rent, the list goes on. Every step of the process costs money and no one involved in the project wants to risk losing the money that they have invested. Consider for a moment all of the finances that are at stake with a construction project. First, you have the landowner, most likely the person undertaking the project in the first place. This person has put everything into this project and is the primary financial point. Sometimes there are also investors to consider. These people are putting money on the line when they make the decision to invest, generally large amounts of money. Next, consider the contractor. This person has taken on this job for the purpose of getting paid which in turn allows him or her to pay their crew. The crew works in the belief that they will be paid for their efforts. The suppliers provide products to the project in exchange for payment. The list continues to grow. Everyone involved in a construction project has a financial stake in the outcome of the project. Because of this, it is important to have protections in place that ensure money isn’t lost if something goes awry. There are many aspects to ensuring all necessary protection, but there is one that can be set in place before the project even begins, contractor bonds. Here you will find valuable information about contractor bonds, what they are, how they work, who needs them, how to get them.
The first thing you need to know is what exactly a contractor bond is. You may have heard or seen the term “bonded contractor”, but what does that really mean? Bonded and licensed are often mistakenly thought to be the same thing, but they are not. Although, the two things often go hand in hand. A licensed contractor simply has proof that they have taken the necessary steps to become a contractor and is allowed to work in the state he is licensed in. A bonded contractor means that he has purchased a surety bond which is a type of insurance that is meant to protect all involved parties. Not all contractors are bonded as it is not a requirement to practice their trade. Therefore, if you are looking for a contractor and want that added level of protection, you will have to specifically search for a bonded contractor. What exactly does a surety bond protect against? A surety bond protects the landowner in the event that the contractor fails to file or pay for the necessary permits, fails to pay for supplies or subcontractors, fails to complete the job, fails to meet any financial expectations, and property damages. This bond gives the property owner a feeling of security that otherwise is not present. If you are interested in learning more, contractor bond – contractorbond.org
If you are a property owner that would like to hire a bonded contractor, there are a few steps you can take to aid in finding what you are looking for. The first step is to find out which contractors are bonded and which are not. To do this, you will start with a basic internet search. You can start by searching for the word “contractor” along with location descriptors. This will provide a list of options, but it will not help you specify which ones are bonded and which ones are not. If you want to start out with a more specific list, you will need to add “bonded” to your keywords. This will narrow down the options, but it is not a guarantee that you will only be presented with options for bonded contractors. Regardless of which type of search you perform, the next step is to look at the proffered websites. There will be company websites, blogs, review website results, social media pages, and phone book results. The company websites and company social media pages are the best places to look for the information you need, but if you cannot find the information, look for the contact page and call or email the company with an inquiry. Generally speaking, a contractor will boldly list if they are bonded on their website, but there will be times when this information is not readily available. In these cases, you will have to reach out to the contractor with an inquiry. If you are not entirely positive about the contractor’s bonded status, never hesitate to ask.
If you are a contractor that is interested in becoming bonded, you must first do a bit of research. This research will primarily consist of determining which type of bond you need, at least at first. There are three types of surety bonds; bid, performance, and contractor. There are a few other options, but these three are the ones most often needed. Also, you will need to determine the amount you need the bond to be. Different people will have slightly different needs that are decided by a myriad of aspects. Having this vital information in advance will make for a much smoother process and allow for your bond to be issued quicker and without unnecessary hold-ups. Once you have this information, the next step will be to look for a bond company. There are many options and you will need to take your time with research because this is an important decision, not to be taken lightly. As you are searching for a company to issue your bond, one thing that you must keep in mind is fees and percentages. Look for low interest and pay attention to the fine print. If you have a question about a bond, ask them, sooner rather than later. Never sign anything or agree to anything if you still have questions.