What’s Your Bond?
Trust is something that’s harder to come by these days than it used to be. There’s an expression I’ve heard “My word is my bond”. You don’t hear it much anymore these days. Probably because most people want more than just your word about something (not to mention the fact that most people would rob you blind if you give ’em half a chance!). Instead they’d rather have a surety bond. It’s basically a guarantee that you will perform some job to certain specifications and in a timely manner. Lots of businesses use them to guarantee performance. Courts and the legal system use them to guarantee that somebody will show up for a court action. In any case, if you don’t do whatever the bond is for, then that bond pays someone to compensate for your failure to keep your word.
A contractor would use a performance bond as a guarantee that they will do the work they’ve been contracted to do. If they don’t get the job done on time that bond pays the person that hired them.
Then there’s the contractors license bond, This is basically guaranteeing that the business will be operated according to local, state or federal government rules. Also related to this is the Site Improvement bond, which is usually required as insurance that public property like streets, sidewalks & so on will be put back the way they were when the project is done.
Filed under: Misc Assorted General Stuff
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