The contractor licensing process can be very intimidating.
For many, Navigating and understanding construction laws is a very daunting talk.
Furthermore, California is notorious for having more laws than other states. One of the most common areas of confusion are construction bonds.
A simple search google brings up several different types of bonds. This course will cover: Surety Bonds, Performance Bonds, Construction Bonds, and Payment bonds.
How do you know which one is right for your construction business?
The following information breaks it all down in detail clearly so that you can make an informed decision. First lets get into how construction bonds work:
The best way to avoid a claim against your bond is to always include the terms of a construction contract in writing. Also, include documentation of any changes to the contract that may have occurred before the project was completed.
Doing your due diligence pays off in the end. You are going into business with the surety company so treat your search almost like a hiring process.
Companies that offer insurance products specific to the construction industry are often better options than ones selling a variety of insurance products.
The name of the game is being organized and transparent in your business, which should go without saying. Above all, keep good records, open communication and follow through on what you promise.
The majority of issues like claims, complaints and other disciplinary actions against your license and bond, can easily be avoided with simple attention to detail.