I have a subcontractor requesting payment for their performance bond. The project is for DOT, just this week we completed precon meeting and finalized a start date. No work has been done to date. We normally pay our subs once work has been completed, we have been paid then we pay our subs. Do we need to pay the bond before work has started, or tell them we will pay them once we are paid by the client?...Read More
I'm a subcontractor working on a public works project and we have been referred to a surety bond company to obtain a bond for this job. We noticed there is an indemnity agreement that binds both our company and owners in the event the bond is enforced. Is this common practice? Is there any other alternative to surety bonds?...Read More
hello, what is it called when you request data from a company to confirm they can perform the work being asked to perform? thank you!
Trying to confirm the proposed contractors are actually qualified to perform the work....Read More
I have hired a GC and we are currently negotiating a lump sum price for the project. The owner plans on procuring a Payment and Performance bond on the GC but the GC is also including the cost for procuring P&P bonds for each of the subs (to protect themselves) and then wants to pass this cost along to the Owner. Should the Owner be paying for P&P bonds for both the GC and the subs?...Read More
I have a contractor that has been paid for specific phases of a rehab project home in Grand Rapids. The bulk of these phases are either incomplete or not even started and no one has been on the job for a couple weeks. What can I do?
Thanks for your help!
My company worked on a project and we were not paid. I file a claim against the performance bond but they denied the claim. So I file a mechanic's lien on the building. Now, the attorney for the owner/building is trying to bond-off the lien by claiming that the lien is illegal. They are stating that the performance bond protects the project/building against all liens. Is this true?...Read More
I had a small specialty contracting business, Finish Carpentry. I had a performance bond issued by an insurance company, upon my making a one-time payment to the insurance company. I can't remember the name of the insurance company. I think I made a one-time payment to secure the bond, and the insurance company held onto my money to secure the bond. There was never any claims made against my bond. After 12 years of contracting, I closed my business. I forgot about the bond. Recently, I have been contacted by the bondholder/insurance company 26 years after closing my business because they are holding the money I paid to secure the bond, and they want to return it to me. It has accrued interest through the years.
1) From the above information, can you tell me what kind of bond I had?
2) I lost the letter I received from the insurer and I would like to know how I can find out the name of the company that was my bondholder/insurer. It was approximately 26 years ago that I closed my company, and I cannot remember the name of the insurer. Can you tell me how I can research that and find this information?
Thank you very much. A. Mastick...Read More
I submitted a bid for a prevailing wage project however the scope of work ended up being more than anticipated. We notified the General Contractor that our company would be unable to perform. No contract had been signed. That same General Contractor has reached out asking for money for liquidated damages for the delay they claimed to have experienced while finding a new sub to complete the work. The letter also states that they want payroll records from us working on the project however that is false. We never worked on site because we did not sign a contract. Their claim is that our written proposal is written contract enforceable by law. How should we proceed? ...Read More
So, I have a client with a 1/3 limit. he needed a higher aggregate but couldn't qualify with his current surety company. Either at the advice of his accountant, another surety agent contacting him or the client contacted another surety agent, they opened another bond line with another surety company and now exceed their original aggregate. client told me other carrier knows about original aggregate and is providing excess bonding. also, at a lower rate.
is this proper? The first surety carrier doesn't know they opened a second line. seems that the original surety carrier is at a higher risk now....Read More
We are a school district in Colorado and we had hired a local contractor to install HVAC upgrades to three of our schools. Are we required to have a performance bond from him? The total am ount of the job bid is $993,000. Would a retainage fee of 5% be a better option?...Read More