Some bonds are Concrete Contractor Larel Canyon CA to protect buyers against substandard work that does not comply with local building codes. All bonds do not always assure the financial or professional integrity or competency of a potential contractor.
Most States and Canadian Provinces, require contractors to have Contractor’s License Bonds. It is imperative that homeowners and real estate investors understand that this type of bond does not provide a financial guarantee. What is worse is that Contractor’s License Bonds provide homeowners and real estate investors with no assurance or representation about the potential contractor’s competence, the potential contractor’s financial strength, or their financial responsibility.
The good news is that a construction contract bond from a reliable bonding company or insurance company does actually guaranty the homeowners and real estate investors, and their lender. The contract bond guarantees that both the job will be completed and that all subcontractors and materials supplied will be paid, and that no contractor or materials liens will be recorded against the property.
Homeowners and real estate investors should know that virtually all lending institutions, such as commercial banks, credit unions, and savings and loans require contractors to secure bonds for large jobs for which the institution is lending money to complete. The good news is the lending institution’s rigid bonding requirements keep a contractor with a poor track record from bidding and qualifying on potential jobs.
A potential contractor who has construction contract bonds from a reputable bonding firm or insurance company does guarantee homeowners and real estate investors of both job completion and payment of all labor and materials.
