If you’ve hired a company to construct a building, you’re probably looking forward to the day when it will be done and you can use it. What if something goes wrong, though? If the contractor has financial troubles leading to bankruptcy or some type of accident occurs, your project might never get finished. This can cause difficulties for you, and all the money invested to that point could be wasted. A Maryland construction bond helps ensure that this doesn’t happen—or that you will be protected if it does.
What Are Construction Bonds?
A construction or performance bond is a type of surety bond, which is an agreement to ensure a task is completed. You agree to buy the bond, and in return the insurance company agrees to make sure that the construction business completes the project. If the insurance company cannot get the contractor to finish the project, then they will pay you for the unfinished investment you have already made.
Do You Need A Bond?
You should consider getting a construction bond if you doubt that your construction company will be able to finish the job. If they seem to be financially shaky, or your property seems prone to certain problems (such as natural disasters), construction bond are a great idea.
These days, construction bonds are practically required for larger projects. A construction bond can help protect your property and make sure that the job gets done.