Hello, my name is Jerome Silas. Welcome to my website about creating and following a healthy household budget. When I was in college, I tried to create a smart budget to save all the pennies I could after paying my bills. Unfortunately, I jumped in too fast and created a budget that was impossible to follow for the long term. Through the years, I have learned all about the methods that work best while creating and following a budget. I would like to share those methods with you all to help everyone create a healthy household budget. Thanks for your time.
When you hire a contractor, he or she does not simply pay for the permits to do the job you want. He or she also has to pay for performance bonds and payment bonds. These bonds should be secured by the contractor out of his or her own pocket, and the cost should not be passed onto you. The contractor needs to have both of these bonds before he/she can start work on your project. Here is why:
The Federal Government Requires Both Types for High-Cost Projects
For any project that costs over $35,000, the federal government requires contractors to carry performance bonds to ensure the completion of a project, and payment bonds to make sure all workers and suppliers are paid. Not paying for bonds when the projects exceed this dollar amount can result in the loss of the contractor's license and multiple lawsuits. Unless you are just requesting that the contractor patch your walkway or some other small project, there is a very good chance that your remodeling projects fall above the $35,000 expense cost.
The Contractor Cannot Find Supplies or Suppliers Without Payment Bonds
A contractor is only as good as the supplies he can secure. Building supply companies and stores will not provide the supplies on a charge account unless the contractor provides a payment bond when opening the account. Without the payment bond, there is no way a contractor can get the supplies needed to complete your project, nor can he/she give you a proper estimate without knowing where the supplies are coming from.
No One Will Work for a Contractor Without a Payment Bond
Short of migrant workers, no one will work for a contractor without a payment bond. The payment bond is the insurance and assurance that the crew hired to work the job will get paid regularly and at the wage promised by the contractor. This also includes any subcontractors that will have to assist the contractor on your project (e.g., an electrical subcontractor to install lighting or a garage door opener on a new garage).
The Performance Bond Is YOUR Guarantee
A performance bond is your guarantee as the consumer that the contractor you have hired will start and complete the job on time and as expected. If you hire a contractor who does not have a performance bond before starting work, you have absolutely no guarantees of completion or of the quality of work. Check to make sure your contractor is "bonded" before you pay him/her a single dime to get started.
Share27 July 2017
