what does it guarantee?

[Bond Artist]

What exactly does a contractor license bond guarantee? Does it guarantee that my staff and I complete work?

[marietta68]

Originally Posted by Bond Artist

What exactly does a contractor license bond guarantee? Does it guarantee that my staff and I complete work?

Contractor license bonds generally guarantee that the business will be run in compliance with local laws and regulations. Some of the bonds guarantee payment to third parties in the event damages are awarded for noncompliance. Completion of work is beyond the scope of licensing oversight and would make license bonds cost-prohibitive. It's always helpful to review the statutory code section that's referenced in the license and bond form to understand the underlying obligations that are covered.