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Condominuim Complex Contract

Discussion in 'Starting a Lawn Care Business' started by dbu321, Dec 1, 2005.

  1. dbu321

    dbu321 LawnSite Member
    Posts: 6

    Alright, I'm bidding on a condominium complex contract and found out some information today. I'm required to be insured and to be "bonded". I'm just curious as to what being "bonded" is and also if you need to be official and licensed to have insurance. Thanks
  2. Frontstreetlawns

    Frontstreetlawns LawnSite Member
    Posts: 168

    as far as i know to be insured you have to be a buissness to get buissness insurance
  3. cwlawley

    cwlawley LawnSite Senior Member
    Posts: 470

    I beleive being bonded means that you are basically insured if you do not do the job, do it correctly, or do not show. I could be wrong though.
  4. vanguard

    vanguard LawnSite Member
    Posts: 202

    I believe that Bonding is mostly used for companies like maintenance or janitorial companies that have access to the interior of buildings when the owner/occupants are not around. this is rarely required for Lawn/grounds maintenance;) Also can be used to "warranty" the completion of large contract jobs.
  5. dbu321

    dbu321 LawnSite Member
    Posts: 6

    Alright so from what I gather I need "bonding" anyways, but if I'm correct its when insurance that the job gets done by someone? As for the insurance, I need business insurance, and need to become licensed with the state first too. Now if I'm licensed with the state do I know pay taxes on my business's profits? Also what shoudl I be looking at to pay for insurance, like a ballpark figure?
  6. BCFLawnLandscape

    BCFLawnLandscape LawnSite Senior Member
    Posts: 333

    I pay 300 bucks a yr. for a 1 mill. liability.... I don't know if that's high or low elsewhere but that's what it is here in Ohio.
  7. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    Being BONDED is totally seperate from your commercial liability insurance. Being Bonded is a "type" of insurance that covers "honesty issues" in doing the work and/or in the event your company is accused of theft of sometype. It is cheap to get has mine runs $150 a year where my major commercial insurance policy rund $1400 a year, BUT the Bond is also based TOTALLY on your Credit Rating so you MUST have outstanding credit or you will not be "bondable" and companies will not write it for you.

    As to being official and licensed, well forget if it is a requirement of your insurance carrier, cause it is the LAW and if you are running any business you must be licensed.

    NOTE: I also just saw where you are only 18 years old and nly in business for 1 year, so it will be nearly impossible for you to get bonded.....you may, but I wouldn't count on it.
  8. lawnsbyrj

    lawnsbyrj LawnSite Member
    Posts: 147

    not true (well misleading.) I have a 1 million dollar General Liablilty cover ag. I am a Sole proprietorship. Working in diffrent cities and basing my buisness in none of them. I did not have a "buisness Lisc" when the policy was written. However I do pay state and fed taxes. As far as Bonded call around SOMEONE will bond your work can you afford it is the question.
    "Never Say Never in this World"
  9. hoskm01

    hoskm01 LawnSite Fanatic
    Posts: 5,690

    There are many types of bonds that an entity can acquire, only two of which you will probably ever need.

    A bid bond assures that you will execute the contract at the specified price. This will be included with your bid, before award, if so required. These are required for larger projects and by most government agencies and larger corporations and companies.

    A performance bond is the general term for a security that ensures that you will a) complete the project- b) pay for the materials for the project in a timely manner- c) pay employees used for the project. This is the bond usually required for most contracts and is due after award of the contract. Typically, bonds for projects under 100k will be based solely off of your personal credit. Over 100k, will be based on your credit and the credit of your company. If you do not have exceptional credit (you don’t have good credit at 18, believe me.) then there’s no way you’ll get bonded.

    Lastly, you need to be organized as an entity to get a bond. As long as you are at least a sole proprietorship, LLC or something other than DBU from down the street, you can get a bond. Again, its doubtful you’ll get a bond at 18 yoa, but everyone has a price if you can pay. Good luck, get a good bond agent if you’re serious about going this route.

    MMLAWN- It is not law everywhere to be licensed. In some states/counties/cities it probably is law, but everywhere is different and varies based on what kind of work you're doing and at what dollar amount. However, it certainly can't hurt to be licensed, better safe than sorry.
  10. MMLawn

    MMLawn LawnSite Gold Member
    Posts: 3,569

    Dude that is a crock. Your business in NORTH CAROLINA is based where you (the County and City) have the DBA Registered (which is REQUIRED by NC Law to be a DBA, if it isn't regsiered and the registration fee paid then you don't have a legal DBA in NC) no matter where else you do busiess. In your case you are required t have it registered with the Guilford County Register of Deeds Office since you live in Bro Sum. You then (again a REQUIREMENT) of NC LAW MUST have a Business License in every single city, town, county that you do business it that have them. In Guilford County, all towns except Jamestown require a local business license to do ANY business in the towns. In addition you MUST also have a County License. We also work all over Guilford County and as far East as Raleiigh and West as Charlotte so I have a licenses in our Corp Name for Guilford County, Greensboro, High Point, Alamance County, Durham County, Durham City, Wake County, Raleigh, Cary, Charlotte, Meck'burg County.

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