What is the Bond of Contractor?
The Bond of Contractor are usually entered into when public projects are to be performed. Though some private projects too may require the same. This ensures that the job is completed properly. The reason why Bond Of Contractor is needed is either it is needed by the owner or the contractor who has hired you as the subcontractor.
There are different types of Bond Of Contractor:
- The bid bond which gives you the permission to bid on bonded jobs and this is in the protection of the public.
- The performance bond ensures that whatever is to be paid to the laborers, sub contractors as well as suppliers, will be paid out
- The Maintenance Bond gives you the permission to work on jobs which require warranty on the workmanship
- The Supply bond us used as permission to allow you to work on those projects where material is to be delivered by you.
If the owner requires a bond from the general contractor, you as a general contractor in turn need to get bonds signed with your sub contractors to ensure their work as well as to ensure payments made to their workers and suppliers.
A contractor’s license bond is needed when you have to get a license on where the work is being performed. It makes sure that the rules and regulations of the license are being adhered to. This depends and varies from state to state.
The cost of the Bond Of Contractor depends on various factors. It depends on the type of bond, the rate and the size of the bond.
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