I'm Confused

[mwelch00]

Here's our situation.

Our homeowner association that has hired a project manager and a renovation/building contractor to remove our old siding and install new siding (with insullation, etc.) at a cost of about one million dollars.

The questions are:
1. Should the Association get a bond to protect itself, or
2. Should we require the Contractor to obtain the bond, and
3. If so, what kind of bond would we need?
4. How much do these bonds normally cost?

We have been told so many things by so many people and the latest information is that if the Association gets a bond, then we are only protecting the Contractor, not ourselves. Can anyone help me explain this to our Board of Directors?

Thanks,
Margaret

[Admin]

1. No
2. Yes, the contractor will obtain the bond. The association would collect in the event of a claim.
3. & 4. Please call 215-766-1990 and ask for JD. He is head of our contract bond department.