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Contractors-being bonded

jimdeerejimdeere Member, Moderator Posts: 26,273 ******
edited July 2015 in General Discussion
I retired from an industrial plant last year and have been thinking of doing electrical work locally.
I have my Master Electricians license in Virginia and am looking to get my class C contractors license.
I see a lot of contractors state that they are "bonded".
What exactly does that mean? I know it is something like insurance.
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Comments

  • JnRockwallJnRockwall Member Posts: 16,350 ✭✭✭
    edited November -1
    for us, it means if we belly up the bond company will finsh the project. So the city, county, state or feds dont pay out on a bridge and then we tuck tail and run. Sticking them with higher cost to finish.

    The bond company would eat any and all loses to complete the project.
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  • nmyersnmyers Member Posts: 16,892 ✭✭✭✭
    edited November -1
    There are a couple of meanings.

    It could mean that a third party has investigated your business, & has agreed to pay claims against the company. It could be linked to your contractor license where the state requires bonding.

    Also, individual employees may be bonded by a company that has investigated the employees, & will pay any loss caused by those employees.

    Neal
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  • yoshmysteryoshmyster Member Posts: 22,051 ✭✭✭✭
    edited November -1
    Maybe they do their job with leather face masks with zippers and nipple clamps? You have to be careful of "jobs" on C-Raig's Lisst.
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  • babunbabun Member Posts: 11,038 ✭✭✭
    edited November -1
    quote:Originally posted by JnRockwall
    for us, it means if we belly up the bond company will finsh the project. So the city, county, state or feds dont pay out on a bridge and then we tuck tail and run. Sticking them with higher cost to finish.

    The bond company would eat any and all loses to complete the project.


    This^^

    BUT there are different types and amounts of bonds. The bond company is liable up to the bond size.
    You may be bonded at $100,000 level, don't bid on a $500,000 job.
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  • asopasop Member Posts: 9,018 ✭✭✭✭
    edited November -1
    There are "Bid Bonds" and "Performance and Labor" bonds. All gov't work requires both from normally the general contractor. Just stay away from work that would require a bond from an electrical contractor. Not real common.
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  • babunbabun Member Posts: 11,038 ✭✭✭
    edited November -1
    quote:Originally posted by asop
    There are "Bid Bonds" and "Performance and Labor" bonds. All gov't work requires both from normally the general contractor. Just stay away from work that would require a bond from an electrical contractor. Not real common.


    What????
    I worked for one of the biggest Electrical Contractors in Tenn.
    You can't bid a job without a bond. On one extra big school being built, we had to up our bond to 3 million coverage.
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