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View Full Version : Getting bonded??


meets1
04-25-2011, 09:54 PM
Bidding a large mowing/spraying-fert/parking lot striping/bush trimming/do all everything at this place. Fortune 500 company. They awarded me the contract. After the fact they called and said general lib is great but I need bond to secure the job. I called my insurance man and he said $10K bond is $275 a year. Should I have more, does this seem reasonable priced? I have no idea as I have never been bonded b/f.

The company didn't say how much they wanted but I just needed to be bonded.

joshua
04-26-2011, 02:47 AM
the bond should be the size of the contract for the year or job. so if all your services for them add up to 10K thats the bond , 20K then you need a bigger bond.

h2oskier
04-26-2011, 03:47 AM
Send them some Gold Bond in the mail. :laugh::laugh:

gasracer
04-26-2011, 10:07 AM
I wonder why you need to be bonded since you are not inside the location.

Yarden Of Eden
04-27-2011, 03:40 AM
Bidding a large mowing/spraying-fert/parking lot striping/bush trimming/do all everything at this place. Fortune 500 company. They awarded me the contract. After the fact they called and said general lib is great but I need bond to secure the job. I called my insurance man and he said $10K bond is $275 a year. Should I have more, does this seem reasonable priced? I have no idea as I have never been bonded b/f.

The company didn't say how much they wanted but I just needed to be bonded.
I have had a client ask me to be bonded before, I called my insurance guy and he said he never heard of a lawn guy getting a bond for work that is paid for after the service is completed. He said that the purpose of a bond is to cover the contract in case the contractor flakes out on it. In that situation, I just don't see why a client would require this. You may want to ask the client about this, as they may decide to overlook this, like my client did.
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rodzilla94
04-27-2011, 09:32 PM
i will tell u i have been in commercial construction (family business) for 20 years and i will tell you that the bond you will have to get is a liquid asset bond. Most on here are right about the bond but i will ad that they can hold this over your head. The bond is for non completion of work and if the work is not up to par FOR THEM. all they ( the company you will work for) has to do is call at any time to your agent and tell your agent that u and your company is doing shoddy work or not doing all of your contract ( they will have to prove this to your agent). that means you will have to give your bond ($) or something in your personal moneys or something worth 10k or more to pay that bond back. this is how our bond works....ps if the agent ask for records( taxes ect.) for you and your company then this is what kind of bond they are wanting

meets1
04-27-2011, 11:10 PM
I got the minium bond at $15K for $300 / year. My guy never asked for any records or anything. He just wanted FED ID # which he had already being he has my business insurance and SS # of myself. That was it.