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Subcontractor Bonding

1941 Views 4 Replies 3 Participants Last post by  cpdatlanta
For a General Contractor which subs would need to be bonded? MEP? etc. Or would you have to bond all of them. Kind of confused how this works. Thanks
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My opinion is (unless local laws over rule), is that any trade's work that you could not afford to have completely re-done from scratch should be bonded. ME&P would be the big hitters. Maybe masons and roofers too.
cpdatlanta said:
For a General Contractor which subs would need to be bonded? MEP? etc.
So should you bond every sub?
mdshunk said:
My opinion is (unless local laws over rule), is that any trade's work that you could not afford to have completely re-done from scratch should be bonded. ME&P would be the big hitters. Maybe masons and roofers too.
You should take a real hard look at what you hope to accomplish by requiring subs to provide bonds. Bonds may not be the best instrument to achieve the outcome you desire.
A bond will not provide you a quick fix in circumstances where non-performance is an issue. They may not help at all if your subcontract agreement has holes in it. Your best protection against non-performance issues is selecting reliable subs and using tight subcontact agreements.
Remember, if you are competing against others who do not require bonds you are automatically at a competitive disadantage in terms of your cost. This cost may include not only the bond's cost plus mark-up but the cost of whatever additional risk the sub perceives in performing bonded work vs. non-bonded.
Thanks that helps alot
PipeGuy said:
You should take a real hard look at what you hope to accomplish by requiring subs to provide bonds. Bonds may not be the best instrument to achieve the outcome you desire.
A bond will not provide you a quick fix in circumstances where non-performance is an issue. They may not help at all if your subcontract agreement has holes in it. Your best protection against non-performance issues is selecting reliable subs and using tight subcontact agreements.
Remember, if you are competing against others who do not require bonds you are automatically at a competitive disadantage in terms of your cost. This cost may include not only the bond's cost plus mark-up but the cost of whatever additional risk the sub perceives in performing bonded work vs. non-bonded.
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