Bond prices

[D-Unit]

Hi I'm wondering what is a good price for a Electrical/Telecommunications Bond. I've been calling around & I'm just wondering what prices you guys have paid.

 

[satcom]

Hi I'm wondering what is a good price for a Electrical/Telecommunications Bond. I've been calling around & I'm just wondering what prices you guys have paid.

A Bond is not something you shop for, it will vary on your years of experience, your years in business, your credit rating, also type of bond

 

[LazyS]

Are you talking about general liability insurance or are you talking about actually bonding a specific job? If its the latter I'd say roughly 1 1/2 % is a good number.

 

[mull982]

Can someone explain how a bond works specifically in the electrical industry. Are all projects typically bonded or just ones above a certain amount?

How does the bond process work in regards to how much of the job is covered should the contractor not complete the specified job?

 

[infinity]

Here in NJ you're required to get a $1000 Surety Bond. They cost $50 for three years.

 

[petersonra]

Can someone explain how a bond works specifically in the electrical industry. Are all projects typically bonded or just ones above a certain amount?

How does the bond process work in regards to how much of the job is covered should the contractor not complete the specified job?

Place I used to work sometimes contracts called for a bond to guarantee the work got finished.

Most of the time what they wanted was a third party to guarantee the work would get done in case we went defunct in the middle of a project.

At one point we were owned by a Fortune 50 company and most of the time a subsidiary of the the corporation bonded us if it was required. It always seemed like a bit of a scam to me to handle it that way. But the sales department liked the arrangement because it was about a 1% cost savings right off the top.

 

[shockin]

A Bond is not something you shop for

While I have never "shopped" for bonds it might not be a bad idea. I suppose it is possible that one insurance company will give you a better rate then another. But I try to stay out of that end of the business.

Like others have said a bond usually costs 1% of your bid.

They are usually only required if you are bidding a project "prime". In other words you will be working directly for the owner. If we are working thru a GC I have never had to get a bond, but this may vary from place to place.

 

[shockin]

I should clarify that you wouldn't shop for a bond on a job by job basis. It is quite a process to go through in order to get bonded.

But if you have never been bonded before, it might be worth talking to a few different companies to compare rates.

 

[AV ELECTRIC]

In California they require you to carry a contractors bond with an active license prices very some what on first time purchase but after that they will raise it up to more reflective price in the industry and credit rating in a negative sense could cost you a lot more or claims against that bond.

 

[shockin]

Maybe the OP could clarify:

Are you refering to a contractors bond required by a City or State, or is it a performance bond for a specific project you are asking about. Two totally different animals.