Why Does a Contractor Need to be Bonded?

A contractor needs to be bonded because the level of contractor fraud against consumers is high enough the state, county, city, or project owner demands protection.

Let me explain.

Whether you're getting a:

• Contractor license bond
• A permit or right of way bond
• A performance bond

The customer of the contractor expects the project to be completed:

• Following building codes
• With quality work
• Using the correct materials
• Following the contractor to the letter

Unfortunately, there are licensed and illegally unlicensed contractors who cheat their customers to make money.

Examples of fraudulent actions include:

• Breaking the terms of a construction project
• Taking deposits or down payments and never starting or completing a project
• Replacing agreed upon materials with cheaper alternatives to increase profits
• Fail to pay subcontractors for completed work
• Fail to follow building codes and purposefully performing poor quality work

Because these issues are so prevalent, state, county, and city governments require contractors to purchase a contractor bond.

This means purchasing a surety bond.

Even private project owners require contractors to be bonded as a guarantee the project will get done on time and according to the contract.

This is what a contractor surety bond is:

It's a special type of insurance contract you purchase a the contractor as a guarantee that you will:

• Follow all laws, rules, and regulations in your state
• Complete projects according to the contract
• Pay any required sales taxes on projects

Getting bonded a? a contractor is easy.

It starts by requesting a quote so you can get pricing.

That's what we do. We help you find the lowest possible price for the bond you need.

After you purchase, we issue your bond in one business day and can even help you file it.

Once you purchase, you're officially bonded.