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?
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?
it depends on who is requiring them to be bonded
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
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
JK thank you so much for your reply. You answered my question! Thank you again!