To Be Bonded - General Discussion - Contractor Talk

To Be Bonded

 
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Old 10-24-2012, 07:27 PM   #1
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To Be Bonded


I need some input. Is it necessary to be bonded? When would it be needed? How do you even go about getting bonded? I've been at this for 13 years, fully lisenced, fully insured, etc. I've never run into the need to be bonded for a job, and never been asked by a homeowner if I was bonded. So why am I asking? I just want to know so if homeowners start requesting it because they saw the word in an article somewhere, or they were told by some home improvement show that they needed to be asking for it, I can get prepared if needed.

Thanks for any input you can provide.
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Old 10-24-2012, 07:47 PM   #2
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Re: To Be Bonded


If you are going to do work for corporations or commercial work you will need to be bonded. You can google bonding companies and find one in your area. To get bonded you will need to have some cash in the bank, good credit, and exceptional books. Creating a relationship with a bonding company, and talk to them before you need the bond. They will tell you what our limit will be.

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Old 10-24-2012, 09:02 PM   #3
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Re: To Be Bonded


From my experience bonding is not that big a deal, mostly paperwork. For a standard $25k bond I am paying a bit over $500 / yr.

Depending on the type and size of your projects it could run into some money. For instance, in the City of Atlanta if you do any work in a public right of way the city requires a $1 mil bond.
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Old 10-25-2012, 05:04 AM   #4
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Re: To Be Bonded


Thanks for the replies. I had thought bonding was for commercial and government jobs. As I said, I hadn't been confronted with it, but was wondering if it may slide into residential work. Thanks again.
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Old 10-25-2012, 05:29 AM   #5
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Re: To Be Bonded


There are different kinds of bonds for different situations. Basically a bond is an assurance that you're going to do something that you've promised to do. So a performance bond is a monetary assurance that you'll be able to complete a job as promised (so a client doesn have a half completed strip mall after you go under), a bid bond is a monetary assurance that you'll actually honor a bid that you submit to a client in good faith, etc. Any time you hear or see bonding for our kind of work it means that you've put money aside or hired a bonding company to guarantee that you'll do something.

Every contractor I see advertises that they're bonded and insured, and I assume that they're lying. Only commercial contractors bother with it and then each bond is for a specific job.


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Old 10-25-2012, 05:38 AM   #6
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Re: To Be Bonded


there are several counties and/or municipalities here that require contractors to be bonded

both bonds that I carry are for $10,000 and cost me about $80/year to my insurance company.

you must have the bond if you want the license-and you need the bond and the license in order to pull permits.........
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Old 10-25-2012, 07:16 AM   #7
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Re: To Be Bonded


I don't carry a bond for an entire year I carry it per job. The city requires a 1m bond for doing the approach on a drive way. I'll just get a bond for 2 weeks it ends up costing me less than carrying it every day. I personally only need it Every other year.

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Old 10-25-2012, 07:31 AM   #8
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Re: To Be Bonded


My local municipality requires a bond in order to be licensed and pull permits. It doesn't matter if I am doing commercial or residential.

It costs me about $150.00 per year.

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