What Type of Contractor Bonds Charlotte Do You Need?
If you’re a contractor in Charlotte, you might be wondering what type of contractor bonds you need. Contractor bonds can cover your business in several different ways. For example, they can protect you against lawsuits from customers who are unhappy with your work. This kind of bond is a necessity for any contractor who is working in multiple states. You need to obtain separate bonds for each state you operate in. Charlotte contractor bonds only cover work within the state.
Land development bonds
If you’re planning to build a residential or commercial property in Charlotte, NC, you’ll need to obtain Land Development Bonds before you begin construction. These bonds are required under the City of Charlotte’s Land Development Code, and must be a minimum of 125% of the cost of public improvements. A developer must submit a completed Surety Development Preferences Selection Form with their subdivision plans to obtain this bond.
Contractor’s license bond
Before you can begin bidding on construction projects in Charlotte, NC, you must have the appropriate licensing. The state of North Carolina has various requirements for contractors, and failure to comply will result in a hearing before the licensing board. A non-compliant contractor will also be deemed a non-responsive bidder and the contract will be void. However, if you maintain your licenses and lien rights, you can still benefit from bidding opportunities.
Commercial surety bond
Whether you’re hiring a contractor or a building contractor, obtaining a commercial surety bond is a legal assurance. In North Carolina, these bonds protect the state and people who may suffer losses if you don’t meet your obligations. You can find the right type of bond for your needs by working with an agency such as H.B. Cantrell & Co. They offer a variety of bonds and can find the perfect fit for your business.
Liability insurance for contractors
If you’re planning to work in the construction industry, you should obtain liability insurance for contractor bonds in Charlotte. These types of bonds ensure compliance with state and local regulations. A contractor must be licensed and bonded to advertise. This bond lets potential clients know that you’re reliable and follow the rules. It also protects your business if a project owner files a claim. In case of a bond claim, the surety will pay the claimant.
Cost of bonding
Contractor bonding is required for some kinds of construction work. This type of insurance ensures compliance with the rules and regulations set by the state and local government. A bond is not the same as a bid bond or a performance contract bond. Having a bond on your company’s website or business cards means that it is bonded. In the case of a lawsuit, a surety can pay the claimant if you fail to follow the terms of the bond.
Obtaining a bond in charlotte
If you are planning to start a construction company in Charlotte, NC, you may need to obtain a contractor bond. This type of insurance guarantees that you will follow the rules and regulations in the area. Contrary to what you may think, a contractor bond isn’t the same thing as a performance or bid bond. It’s important to note that a Charlotte contractor bond is required to advertise that you are bonded and licensed. It also assures potential clients that you will follow all state and local rules. Without a bond, potential clients may not trust you, and can file a claim against you.