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Old 08-04-2013, 10:09 PM
AintNoFun AintNoFun is offline
LawnSite Bronze Member
Join Date: Nov 2003
Location: Northeast
Posts: 1,811
Originally Posted by JimLewis View Post
Another scenario is you run out of funds and cannot complete the job. The client goes against your surety bond and the bond company covers the cost to have another contractor come in and complete the job (read more here). Then your bonding company retracts your bond, black lists you, and you cannot get a bond anymore. At least not without paying exorbitant rates. So without a bond you lose the ability to bid jobs like this again and go out of business.
your forgetting another scenario (imo the most likely), he doesn't have the funds to finish and walks away. the gc hires someone else to finish the job and backcharges him the difference. gc sues him for the difference now he can owe another few hundred thousand on the job thus putting him outta biz..
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