Sewer Line

[grasshopper]

I own property that I am trying to build a house on but was told I need to obtain two surety bonds to hook up the sewer line for five and twenty thousand dollars. What type of bond am I looking for and why do I have to get it and not my contractor?

[GBS]

Grasshopper,
You are looking for a Performance Bond that is actually used to secure the Permit you need to do the sewer work. The bond is a requirement of the property owner, not the contractor, because it is actually being used to guarantee the property owner will do the work and finish it according the engineers estimates. The property owner is also responsible for the cost of the bonds. It is also important to remember to get the City or County agency handling your project to sign a notice of completion when the work is done and send it to the bonding company.

[grasshopper]

Why would I be required to get the Bond? How can I guarantee the outcome of the project if I m not physically working on it? It seems I no leverage on the contractor. If the engineer dosen't pass the work does that mean the city will come after me?