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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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DGR,IABD
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cpdatlanta said:
For a General Contractor which subs would need to be bonded? MEP? etc.
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.
 

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Discussion Starter #3
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.
So should you bond every sub?
 

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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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Discussion Starter #5
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.
Thanks that helps alot
 
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