Electrician Talk banner
1 - 6 of 6 Posts

·
Registered
Joined
·
1,948 Posts
It's to insure that you don't leave the customer hanging on unfinished work, theft, etc. It's generally based on the size of the job or what the customer asks for. The insurance companies sell these so you can just call your local agent for quotes
 

·
animal lover /rat bastard
Joined
·
13,543 Posts
there are different types of bonding, but for contractors basically performance and surety. Some owners require contractors (and subs) to post a performance bond for their projects; each contractor pays the bonding company a specific fee for that project, and the bonding company agrees to be the bank if something goes wrong or does not get finished and pay to have it finished. Then they sue you for that amount. Some jurisdictions require surety bonding before they will license you or your company, and the surety bond pretty much is the same thing, just not tied to one project.
 

·
Registered
Joined
·
1,398 Posts
Discussion Starter · #5 ·
there are different types of bonding, but for contractors basically performance and surety. Some owners require contractors (and subs) to post a performance bond for their projects; each contractor pays the bonding company a specific fee for that project, and the bonding company agrees to be the bank if something goes wrong or does not get finished and pay to have it finished. Then they sue you for that amount. Some jurisdictions require surety bonding before they will license you or your company, and the surety bond pretty much is the same thing, just not tied to one project.
So what determines if you can get a bond big enough for a large job, assets?
 

·
Small Potatoes
Joined
·
5,516 Posts
This is a partial list of what one company would require. Your financial strength is a big factor in procuring a bond.


1. Completed "Contractor Questionnaire"
2. Completed "Work in Progress" schedule
3. Last three (3) CPA prepared, company year end financial statements
4. Personal financial statements of the business owner (s)
5. Bank letter verifying balances and credit arrangements
6. Copy of Contractors License
7. Resumes on owners and key personnel
8. Current Insurance Certificate
9. Required Information for General Indemnity
 
1 - 6 of 6 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top