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"Buy Quality, Cry Once"
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726 Posts
Discussion Starter · #1 ·
Hi guys,

I am already insured, but I'm looking at becoming bonded. However I'm unsure of which type bond I need. I'm thinking a "bid bond" (A submitted bid guarantees that the bidder will carry out a contract at the bid price upon award of the bid.) But I'm not sure...any suggestions?
 

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General Contractor
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1,035 Posts
You're actually more likely looking for payment and performance bonds. Bid bonds are more typically used in large commercial or government work - where if you enter a bond and don't take the job - you default the bond and they can use that money to find another contractor.
Payment and performance bonds essentially are guaranteeing that you will pay all your subcontractors/employees and that you will complete the work. If you don't pay a subcontractor / employee and they put a lien on the project you can default the bond and it will be used to pay the subcontractor in order to release the lien.
That's a rough and short description anyway.
 
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