<h2 class = 'uawtitle'>Why Contractor Bonds Washington Professionals Carry Should Matter To Homeowners</h2><br />
<div style='font-style:italic;' class='uawbyline'>by Peter Davis</div><br /><br />
<div class='uawarticle'>When violent weather events occur in residential areas, they usually leave a path of destruction behind them. Homes can sustain all kinds of damage that require immediate attention, and there is never any shortage of strangers promising to repair that damage for a fee. Seattle, Washington officials always warn residents not to be fooled by unscrupulous offers of help. They tell citizens that honest contractors will have <a href="http://insurewa.com">contractor bonds Washington</a> homeowners can check out.<br />
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A contract bond is not the same thing as insurance, although in some respects they resemble each other. Insurance transfers risk from an individual to a third party. It compensates the injured party in case of loss. A contract or construction bond is a form of surety. It guarantees a third party will pay the debts incurred by another and is designed to prevent loss. This contract bond is a three party agreement between the surety company, the client, and the individual doing the work.<br />
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There are three basic types of contract agreements. One is required when contractors bid on jobs. This guarantees the bidder will provide the other two types of agreements once the bid is won. A payment bond guarantees contractors will pay all the subcontractors and suppliers used to perform the job. A performance bond assures the client that the contractor will do the job according to the contract they entered into.<br />
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There are other types of agreements offered by surety companies such as supply, maintenance, and site improvement. A subdivision bond guarantees that contractors will construct certain subdivision improvements, such as sidewalks, streets, and waste management systems, exactly to specifications.<br />
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In the mid nineteen thirties, Congress enacted the Miller Act. It required contractors to have payment and performance agreements when they were awarded public works contracts with a value in excess of one hundred thousand dollars. Since then, many states have enacted similar laws, called Little Miller Acts, regarding contracts for public works projects.<br />
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In order to get a bond of any type, contractors must pass certain tests required by the surety company. They first must be members in good standing in the community, and they must have a reputation for paying their bills on time. Contractors must show they have the resources necessary to fulfill the contract requirements. Finally, they have to show fiscal responsibility and reliability.<br />
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Contractors do default, and the surety company is left with only a few options. It can contact the client and try to get an agreement that will allow a rebid in order to finish the job. Depending on the situation, the company may decide to give the contractors the funds necessary to complete the job. If the company does this, contractors must repay the loan with interest out of profits from the work in question. The company can also reimburse the client for any losses.<br />
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Contractors who default, for whatever reason, have a very difficult time getting a bond from any other surety company. Before anyone has any construction done, they need to know what kind of bond contractors have in place.<br />
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<div class='uawlinks'>When you are looking for information about <a href="http://insurewa.com">contractor bonds Washington</a> residents can pay a visit to our web pages online here. More details are available at http://insurewa.com now.</div><br />
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