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  1. #1
    Join Date
    Aug 2014
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    11

    Default When is a Contractor Required to Be Bonded and Insured

    My question involves business law in the state of: Texas.

    When a contractor is required to be bonded and insured: what are you bonded far?

  2. #2
    Join Date
    Jan 2006
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    38,867

    Default Re: Contractor Required to Be Bonded and Insured;

    it depends on who is requiring them to be bonded

  3. #3
    Join Date
    Aug 2014
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    11

    Default Re: Contractor Required to Be Bonded and Insured;

    If you are a contractor and the city requires you to be bonded what are you bonded for? Hope this question is a little clearer. Thanks for the fast response back

  4. #4
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Contractor Required to Be Bonded and Insured;

    a government can require a contractor to be bonded for a variety of reasons. The most common I have seen is so there is available money should the contractor become indebted to a customer. This could be due to claims against the contractor for defective work, failure to complete work the customer has already paid for, or any other situation where the customer was damaged in some way.


    now, if you are speaking of situations where the contractor is bidding work for the city, there are bid bonds aka construction bonds aka performance bonds. These are to protect the customer more directly. Should the contractor fail to perform as contracted, the customer can make a claim directly to the bond issuer

  5. #5
    Join Date
    Aug 2014
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    11

    Default Re: Contractor Required to Be Bonded and Insured;

    JK thank you so much for your reply. You answered my question! Thank you again!

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