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Contractor is Bonded. #46161
12/15/04 12:27 AM
12/15/04 12:27 AM
C
Cinner  Offline OP
Member
Joined: Dec 2004
Posts: 78
Kelowna, B.C., Canada
What does it mean when a contractor is bonded? Does it mean that...if a company is bonded for lets say $10,000 that this money is held in trust for any faulty work that they do and an unhappy customer can obtain their money back from this bond?

[This message has been edited by Cinner (edited 12-15-2004).]

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Re: Contractor is Bonded. #46162
12/15/04 01:20 PM
12/15/04 01:20 PM
H
hbiss  Offline
Member
Joined: Dec 2003
Posts: 886
Hawthorne, NY USA
It means that the contractor has a ground lug on his leg and a #6 connecting it to the service ground. [Linked Image] Couldn't resist!

Anyway, a bond is like a performance guarantee. If you fail to perform or complete a job according to contract the owner or GC will "call your bond in". The bonding company will then be responsible for hiring another contractor or doing whatever is necessary to complete the job. You are not off the hook though because you are still responsible for costs in excess of your bond amount in addition to damages etc.

Not a good situation to get into.

-Hal

Re: Contractor is Bonded. #46163
12/15/04 01:41 PM
12/15/04 01:41 PM
dougwells  Offline

Member
Joined: May 2003
Posts: 1,142
kamloops BC Canada
Hello Cinner
In the Province of British Columbia all Electrical Contractors need to provide a bond to the Electrical Safety Authority in the amount of 10,000 dollars.This bond can be called upon if for some reason that work has not been done within the scope of the electrical contractors Certification or sub stranded work. The Bond is payable to the Saftey Authourity

I was trying to find it in these documents but havent found it yet
http://www.safetyauthority.ca/services/esp/index.html

Re: Contractor is Bonded. #46164
12/15/04 05:21 PM
12/15/04 05:21 PM
L
LK  Offline
Member
Joined: Jan 2003
Posts: 1,429
New Jersey
Yes, doug we have the same here in New Jersey, The bond is required for business permit, no bond, no business lic., and the bond holder, is the State of New Jersey.

Here in NJ where, electrical contractors are bonded, we should be able to collect payment in full when the job is completed, however we have some lawmakers here that can't read, so they passed a law that requires inspections before final payment on jobs, and that is a good idea for consumer protection, for the gc's and other non bonded contractors, so i guess we will be included with the non bonded group, until our lawmakers learn how read, the law will remain.

Re: Contractor is Bonded. #46165
12/15/04 09:07 PM
12/15/04 09:07 PM
E
e57  Offline
Member
Joined: May 2003
Posts: 2,876
S.F.,CA USA
In California all contractors must hold a bond of 10K, more for Pool Contractors. But, is illegal for a contractor to referance it in advertising for the company. For some reason it considered unfare buisiness practice to say "licensed and bonded" on your truck, and cards, but you have to show your license number on any advertising and forms (Tee shirts too.), and have to carry the bond, but it can't say it on anything except within your contract it seems. Or if someone asks.... WIERD!


Mark Heller
"Well - I oughta....." -Jackie Gleason
Re: Contractor is Bonded. #46166
12/16/04 12:36 AM
12/16/04 12:36 AM
B
beaman  Offline
Junior Member
Joined: Nov 2004
Posts: 9
So. Calif.
Hi e57, in California, the pool contractor bond is still 10k, as it has since I've been licensed.[I have been c-53 licensed for 18 years] Anyway, one difference between the pool contractor bond and the rest of the world of congractors is the cost of the bond itself. Although the costs have gone down, it has been as much as $600 per year but lately I've been down to $300.00 per year. Compared to $125.00 for some generals that I know.

Also, a bond isn't insurance, the bonding company will go after you for all of it's costs if it has to step in to make something right.

Brad

Re: Contractor is Bonded. #46167
12/16/04 07:32 AM
12/16/04 07:32 AM
E
e57  Offline
Member
Joined: May 2003
Posts: 2,876
S.F.,CA USA
Hola Brad,

Yep I guess the pool guys didn't go up when the rest of us did. Used to be $7500 for everyone else, and 10K for the Pool contractors, thought yours went up too. Looked back at an article, and it seems we're all due to go up again in 2007 to $12,500. I thought the pool guys already did.

$600 is pretty steep.... I'd shop around. I believe mine was $125 too. I think there is some sort of scale they come up with the prices with, like contractor class, and number of employees or something.

I get whacked out "Re-newal Notices" from companies I have never done bussiness with around my expiration date. Figure its a scam to "Re-new" with them.... Makes you wonder whos buying and selling your address and info.


Mark Heller
"Well - I oughta....." -Jackie Gleason

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