Calling in Performance Surety Bonds

Written by JoAnn Smith on December 24th, 2013. Posted in Bond Applications, Contract Bonds, Latest News, Maryland, New Jersey, Performance Bonds

     performance surety bonds, performance bond
Unfinished business means pulling surety bonds
Although there are signs everywhere of the economy picking up, we are still hearing of projects in various parts of the country where calling in the performance surety bond is being considered. Whether it is because of bad weather, slow sub-contractors or even in some instances because the primary contractor has gone bankrupt, we continue to read of performance or completion bonds being called in to complete a job. Obviously when it is possible to avoid this, any company does not want to see this happen and end up with a black mark on their ratings. But they do happen and they are a reminder of how important getting the right performance surety bond can be. Here are a few we have seen in just the last few weeks.

Maryland Town at Wits End

They have tried everything, but to no avail. When the town of Ocean City in Maryland hired a contractor to work on the reconstruction and completion of a beach-side comfort station, they expected it to be completed in time for the summer tourist season. That’s the tourist season for 2012. The contractor was delayed by bad weather but even then the delays seemed to continue month after month. The city has finally threatened to pull the performance bond on the project if the company doesn’t substantially complete the project by a set date. The contractor has been working hard to try and meet the deadline, though it is uncertain if he will.

New Jersey Townships Wants Completion

Although the majority of the roads are completed, many of the other amenities that were part of the package in a new subdivision in Bordentown Township are still missing. The company that was the original developer has gone bankrupt and that contract went into receivership which saw Amboy Bank taking over ownership. Angry and frustrated owners have gone to City Hall to demand that something be done to make the roads safe, finish building the last few houses that were bought but never completed and go down the “punch list” of final details in the new housing area. What is unclear is exactly who is responsible for completing these last items. The mayor has said there is a performance bond connected with the project and if he has to pull it to get these last items done he will. The homeowners association has said they have heard rumors that the bond has already been released to the developer, despite the unfinished nature of the project. They are looking for solutions and say that if the town can’t take care of it, they will take on the surety bond questions themselves. It remains to be seen if the performance bond is still a viable option.

Stay Legal with Performance Bonds from BuySurety

If you are getting ready to bid on an upcoming project that will require a performance bond, make sure that the company you buy from is a recognized and authorized surety bond provider. BuySurety has been providing performance bonds as well as a wide variety of other types of surety bonds to businesses and public officials since 1998. Why take chances with something as important as getting bonded? Come by our website and find out just how easy it so to get the right performance surety bond at the right price.

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The Importance of Construction and Performance Surety Bonds

Written by JoAnn Smith on December 10th, 2013. Posted in Alabama, Bond Types, Latest News, Massachusetts, New Jersey, Performance Bonds, Surety Bond Blog

     cost of a surety bond, performance bond
The Cost of a Performance Surety Bond Ensures Construction
December 10, 2013 – Many cities have learned the hard way that cutting costs by not requiring a performance surety bond from a contractor is a bad move.  In two out of three cases recently, a city or government board had required the contractor for local municipal construction projects to post a performance surety bond to ensure completion. When the contractor was unable to finish the project, the surety bond company was able to step into the breach and resume the project. Cities are beginning to see just how important having a contractor post a performance surety bond can be to their own financial welfare. As you can see from our third example, not having that performance surety bond requirement can have major repercussions.

Massachusetts Middle School Project Returns

In Sutton Massachusetts a middle school and high school development had been brought to a halt earlier in the year. The city had fired the general contractor on the job for excessive delays. Now the Town Administrator has announced that the surety company that took over is accepting bids from six different contractors to find the best bid for completion. Months of delay on the project had led the city selectmen to dismiss the general contractor and his sub-contractors and invoke the performance surety bond to find a new general contractor and identify the best sub-contractors to complete the project.

Voorhees New Jersey to Get New Fire Station

Back in August the Board of Fire Commissioners had dismissed the contractor working on a new fire station for the area. The original 1950 building could no longer be used because of changes in the equipment and today’s fire fighting standards. The new building was begun in February 2012 but saw numerous delays. Citing these delays and other problems, the contractor was dismissed and the surety company was brought in to take over the project. The surety company has announced it has hired subcontractors and can begin work on the building in time to have it completed by April of 2014.

Alabama City Should Have Required Performance Surety Bonds

The city of Hanceville Alabama is looking through their planning and building regulations with a fine tooth comb these days. That is because they may find themselves left with tens of thousands of dollars in costs when a local developer went bankrupt before Baylor Cove, the subdivision it was building in the city, was completed. Many cities require developers to post a performance surety bond to cover the costs of infrastructure on a subdivision if they should go bankrupt before completing. Because the city of Hanceville did not require a performance bond from this developer, the cost of completing sewer lines, roads and other infrastructure such as sidewalks is left open to interpretation. People’s Bank foreclosed on the 28 lot subdivision and has offered the city ownership of undeveloped lots in exchange for taking over the paving and upkeep of the streets in Baylor Cove. The city isn’t so sure that is a good deal, but if they don’t take it on the citizens who have bought and now live in the area may have something to say about it.

Getting a Performance Bond for a Fair Price

As you can see, more cities are now requiring a performance bond for any sizable construction project and for a good reason. While the economy is improving, many see the construction business still struggling for the next few years to overcome the massive losses in the building trade. If you are a new construction company, contractor or sub-contractor, talk to BuySurety about your next performance surety bond. We can help you qualify, make sure you have the right bond for that project and get it for you at a rate that will help your bottom line.

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New Jersey, New York and Pennsylvania Surety Bonds for Auto Dealerships

Written by JoAnn Smith on December 7th, 2013. Posted in Bond Types, Commercial Bonds, Legislation, License and Permit Bonds, Motor Vehicle Bonds, New Jersey, New York, Pennsylvania, States

     surety bonds for auto dealerships
What a road for inviting more drivers!
These three states are the business bedrock for many when it comes to the eastern seaboard, especially if for auto dealerships. Of course, New York is the center of commerce, culture and so much more. New Jersey may have gotten sloppy seconds in terms of respect, but it remains a great location for a road trip up along the east coast. When you round these out with Pennsylvania you have an area that is rich in history, tradition and of course plenty of highways to host all those cars you intend to sell from your auto dealership. Yes, a corny way to look at it, but then with Coney Island and Housewives of New Jersey, we just might be allowed to get a bit corny here.

New Jersey Auto Dealer Requirements

With all the jokes made about New Jersey and its residents, you would expect the rules and regulations for surety bonds for auto dealerships to be pretty complicated in this state. You know, to maybe hide the shady dealings going on in the business. But then again, all those impressions of New Jersey being run by guys with crooked noses must be more fiction than fact, because the regulations for New Jersey auto dealerships are pretty straight-forward. Any dealership, whether they are selling cars or trucks and regardless of vehicles being new or used are required to post a $10,000 surety bond for each auto dealership. New Jersey auto dealer bonds all expire on March 31st and bonds must be for a 12 month period, renewed every year when they expire. So – get outta here if you think otherwise!

Pennsylvania Auto Dealer Bonds

A state that is filled with history, the Liberty Bell and cars! The countryside may be filled with pretty little winding highways but cities like Philadelphia seem to be filled with cars, and car dealerships. The state of Pennsylvania requires anyone with an auto dealership to post a $20,000 auto dealer bond as part of their licensing procedure for that dealership. In fact, the dealer bond is a condition of that license and you cannot obtain one in Pennsylvania without proof of a surety bond for auto dealerships.

Auto Dealers in New York

If you are like me, the words New York conjure up that great city and the millions of yellow cabs that run through its concrete canyons. But New York is so much more than that, with a scenic turnpike running up to Albany and the great Hudson River flowing past historic Woodstock to the sea. New Yorkers do love their cars, and you can tell by the number of auto dealerships the state supports. Luckily the surety bond requirements for licensing a New York auto dealership are very simple. Both new and used motor vehicle dealerships are required to post a $10,000 surety bond for auto dealers as part of their licensing in New York. The state has no other requirements regarding when to post it or whether you sell cars, trucks or motorcycles.

Surety Bonds for Auto Dealerships

Opening an auto dealership is complicated, but getting the right surety bond for it is easy. That is, if you contact BuySurety for all your surety bond needs right from the start. Having a resource to cover all the bases for you is a huge help for many business owners, and you have that with BuySurety. Not sure what the state requires? Unsure if you qualify for that specific surety bond? Just visit our website or contact us directly to get all your questions answered. Getting bonded doesn’t have to be complicated. With BuySurety you can fulfill all your bonding requirements for your business at a price that will make your accountant smile.

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Licensing Legislation for Real Estate Appraisal in Massachusetts and New Jersey

Written by JoAnn Smith on December 2nd, 2013. Posted in Commercial Bonds, Legislation, License and Permit Bonds, Massachusetts, New Jersey, Retail and Professional Services Bonds, Surety Bond Blog

     legislation for real estate appraisal
Know legislation for real estate appraisal?
If you work in any aspect of the real estate industry, then you probably know that regulations connected with that business are becoming more stringent. Real estate appraisal companies in Massachusetts and New Jersey will be seeing new legislative action regarding licensing in the coming year. As more licensing regulations are passed, they will often include the requirement of posting a surety bond. Right now both Massachusetts and New Jersey are among the few that actually have legislature in session. Both state legislative houses are reviewing bills that will affect licensing and surety bond requirements for real estate appraisal businesses in these states. Here are the details on each of these bills.

Massachusetts House Bill 992

If passed, this bill would require all real estate appraisal companies operating in the State of Massachusetts to both be licensed with the state and to post a performance surety bond in the amount of $20,000. This surety bond would become payable to a claimant and will ensure that the company performs its duties faithfully under the law. The bill has been in legislature for the entire year but is expected to pass.

New Jersey Assembly Bill 1756

This bill regarding the licensing of real estate appraisal companies that operate within the state of New Jersey was introduced into The Assembly at the beginning of the year. It was referred to the Regulated Professions Committee and was reported to be out of that committee in June of 2013. It is now in its second reading. The bill, when passed would require all real estate appraisal companies to be registered with the state. In addition, a part of that registration is to include the posting of a $25,000 surety bond.

Providing Surety Bonds for the Real Estate Industry and More

Don’t jeopardize your real estate business by not getting bonded when it becomes a requirement. Let BuySurety help you out with all the new surety bond regulations that are becoming law in the real estate industry. We can help you meet the requirements, educate you on what you need to do and make sure you are legally covered by all the new surety bond laws for your business.

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Legislative Updates – Real Estate Appraisal License Bonds

Written by JoAnn Smith on September 6th, 2013. Posted in Commercial Bonds, Latest News, Legislation, License and Permit Bonds, Massachusetts, New Jersey, North Carolina, Surety Bond Blog

There are several states that have legislature in the process of being approved that will affect the real estate appraisal business. These are all connected with license and permit bonds that are to be required as part of the licensing of real estate appraisal management companies.

North Carolina Surety Bond Bills

In North Carolina a bill has been passed that will require such companies to post a $25,000 license and permit bond. This surety bond will ensure that the company complies with the laws and regulations regarding real estate appraisal in North Carolina. It will also be there to ensure the payment of its appraisers. Although the bill will allow direct actions to be taken on the bond itself, it will limit these actions to the amount of the penalty connected with the bond. A company can cancel a bond with a written 90 days notice but must continue to be bonded for two additional years if the company should end its operations in North Carolina. This bill has been passed and as of July 30th was awaiting the Governor’s signature to put the bill into law.

Massachusetts Surety Bonds

As of our latest reading (July 30th 2013), there is a bill still pending with the Massachusetts legislative body regarding real estate appraisal management licensing. This new law would require these companies to be licensed and bonded to do business in the state of Massachusetts. As a protection regarding claimants against the licensed company, a $20,000 bond will be required. As in the North Carolina bill, these license and permit bonds will allow direct action on the bond but that action will be limited by the stated principle amount of the bond.

New Jersey License and Permit Bonds

A committee is currently meeting to consider a similar bond requirement in the state of New Jersey. If passed through legislation, this bill would require that all real estate appraisal management companies doing business in New Jersey be both licensed and post a surety bond. The bond is for $25,000 as part of the company registration with the state. If your state requires your real estate appraisal management company to take out a surety bond, know that BuySurety can provide the correct license and permit bond quickly and easily. We welcome your questions and want you to know that even companies with challenging credit can be bonded through BuySurety. Find out the facts – talk to our helpful agents today.

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