If you live in New York and want to repair, remodel, or build residential properties, you must obtain a home improvement contractor license and license bond. Acquiring a license is something that is required by state authorities to guarantee that the contractors are fully qualified and that they are safe to do business with. Consumers […]
Freight broker bonds are required for most freight brokers. The Freight Motor Carrier Safety Administration (FMCSA) requires both freight forwarders and brokers who intend to be licensed under Title 49 U.S.C. 13904, a to purchase a surety bond of $75,000 before receiving thier license. These bonds are often referred to as the ICC broker bond […]
A reclamation bond is a surety bond that is required by the Bureau of Land Management and other public owners for land disturbance and mining operations. A reclamation bond is usually a requirement if your business wants a permit to begin mining or a related operation at a certain project sight. The purpose of the […]
As of the date of this blog, there are over 280,000 contractors in the state of California. With so many operating contractors, California like many states requires contractors to be licensed and have a California Contractor License Bond to protect the general public. A California Contractor License Bond is a three-party guarantee between a contractor […]
The most popular method for construction project delivery is still design-bid-build. This is where a design professional and owner create plans for a project before sending the project out to bid. A contractor is then selected to build the project. However, that is changing. According to a study by FMI last year, Design Build projects […]
Service contractors have a tough time when it comes to surety bonding. They fall into a gray area for most surety bond companies. Are they contract surety or are they commercial surety? How do they go about getting a bond?
With surety bonds, collateral is typically used for protecting the surety bond company from a possible loss. Here, you can learn about the collateral used for surety bonds, along with some pros and cons of each.
Funds control is a term used in surety bonding and can also be called funds administration or just escrow. It usually involves a third party handling the contract proceeds to process payments for bonded contractor. The idea is very similar to a construction loan on the residential side. The process typically looks something like this:
David Porter is quoted saying, “Litigation is the basic legal right which guarantees every corporation its decade in court.” I find this very true in construction. Even in what appear to be “clear cut” circumstances, cases drag out for years and legal fees escalate. Although it will not eliminate litigation, it is much better to […]
Do you own a business in the oil and gas industry? If so, you may know about oil and gas surety bonds. Regardless of if you have past experience acquiring these types of bonds, or if this is your first time, the information here may prove beneficial along the way.