# Getting bonded ????



## mnjconstruction (Oct 5, 2008)

Hey guys just got a call from maine state housing authority. They have low income apartments and they want to put new decks out in front of all there apartments. There asking me to put in a bid on this. Now I have no problem with the bidding, my question is about getting bonded. I do 99% residential contruction, both new contruction and remodeling. I hear on this job I need to get bonded! So if needed how do I go about this? Thanks


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## rbsremodeling (Nov 12, 2007)

Call your insurance company. 

Typically 250k is the average bond size available for a remodeler. With out putting up tax returns or assets to secure the bond.

If you have good tax returns and assets it can be lots more


Their are independent companies that will bond you for a fee or you can form a joint venture with a larger GC that has the bonding power if needed.



What is the cost of the project?


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## mnjconstruction (Oct 5, 2008)

cost of project 75k


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## rbsremodeling (Nov 12, 2007)

mnjconstruction said:


> cost of project 75k


I think your insurance company can find some one to write that for you give them a call.


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## john5mt (Jan 21, 2007)

so what is the difference between a bond and insurance?


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## rbsremodeling (Nov 12, 2007)

In this instance the bond is to protect them in case work is unfinished. I am guessing it is a performance bond

Read this

http://www.jwsuretybonds.com/surety-bonds/contract-bonds/performance_bond.htm


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## Astrix (Feb 23, 2009)

As this is a government job, they could also be looking for a bid bond in addition to the performance bond that rbsremodeling already mentioned.

If you are the lowest bidder and then end up backing out for some reason, the bid bond will cover the difference between your bid and the next lowest bid.


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## ERAD_DIB (Mar 13, 2009)

It's funny, I was just reading about bonds on the SBA site last night. I didn't realize there were other types besides performance bonds. I don't have enough posts yet to post the link, but SBA might be of some help with that.

I hope MSHA's going to start on Gov. Baldacci's plan to weatherize all the homes in the state within 20 years, and that some of that rolls your way. Go git 'em! Good luck with it.


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## mdshunk (Mar 13, 2005)

BTW... a bond to build that deck will probably be pretty cheap too. It's not really that scary of a thing.


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## rbsremodeling (Nov 12, 2007)

ERAD_DIB said:


> It's funny, I was just reading about bonds on the SBA site last night. I didn't realize there were other types besides performance bonds. I don't have enough posts yet to post the link, but SBA might be of some help with that.
> 
> I hope MSHA's going to start on Gov. Baldacci's plan to weatherize all the homes in the state within 20 years, and that some of that rolls your way. Go git 'em! Good luck with it.



SBA LINK

http://www.sba.gov/aboutsba/sbaprograms/osg/index.html


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## Chris Johnson (Apr 19, 2007)

mnjconstruction said:


> cost of project 75k


For that amount consider self-bonding/insuring.

Pretty simple, purchase a Investment certificate that pays a little bit of interest, beneficiary or holder is you. Now post that against the project as your bond. In a years time (or whatever term you select) you made a few extra bucks from the interest and all at no cost. 

Mind you, the cost for the bond is normally above and beyond the contract amount and is picked up by the GC or Developer.


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## ERAD_DIB (Mar 13, 2009)

rbsremodeling said:


> SBA LINK


Thank you, sir! May much good Economic $timulu$ $tuff come your way. :thumbsup:

And I am now one post closer to the minimum required. :biggrin:


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