I would like to know what the purpose of bonding is and how you get it. What is the amount based on and how do you increase your bond for bigger jobs.
So what determines if you can get a bond big enough for a large job, assets?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.