Surety On The Rocks

Written by JoAnn Smith on November 13th, 2015. Posted in California, Contractor License Bonds, License and Permit Bonds, On The Rocks, On The Rocks, Surety Bond Blog

CALIFORNIA CONTRACTOR’S LICENSE BOND   Recently in the state of California there was an enforcement of the law that all contractors must be licensed and bonded. At this time it was reiterated to the clients the importance of hiring only contractors that have an active license and bond. You might question why you need to be bonded.  The bond is required to ensure that active, reactivated, and new licensed contractors have the ability to cover any damages your client might encounter as a result of poor construction.  It also ensures your employees are paid wages that they have earned. In California all home improvement jobs that will cost over $500 in labor and materials must be completed by a company with a state issued contractor’s license and therefore they must be bonded.  These jobs can not be divided up into smaller contract’s to bypass this law. At BuySurety.com we are able to get a contractor license bond quote quickly for you.  All we require is that you fill out an application on BuySurety.com and fill in your license number.  With a clean license, we can get a fair and competitive quote for you within a few business hours.  Requirements from the state are:
  • The bond must be written by a surety company licensed through the CA Dept of Insurance. – At BuySurety.com we only work with surety company’s that are licensed in all 50 states.
  • The bond must be in the amount of $12,500 – This will increase to $15,000 on January 1, 2016.
  • The business name and license number on the bond must correspond EXACTLY with the business name and license number on the CSLB’s records. – If it does not match exactly it is imperative that you contact the CLSB and make the proper changes before you purchase your bond.
  • The bond must have the signature of the attorney-in-fact for the surety company.
  • The bond must be written on a form approved by the Attorney General’s Office.
  • The bond must be received at the CSLB’s office within 90 days of the effective date of the bond. – In most cases we are able to file the bond electronically for you.
Apply here:  BuySurety
  The Spicy Spiked Cider
  • 1 part Cinnamon liquor – I prefer Fireball
  • 2 parts Apple Cider – Trader Joes offers a great cider this time of year
  • Apples and cinnamon sticks
  • Cinnamon and Sugar
  • Garnish with an apple slice

Instructions

Warm your apple cider on the stove.  Dip your glass in some simple syrup and rim with cinnamon and sugar.  Add you Fire ball and a couple chunks of apple to your glass.  Pour your warm cider over and garnish with an apple slice.  Perfect to enjoy on a cold fall night.  three drinks

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Get Bonded for the Recovering Commercial Construction Trade

Written by JoAnn Smith on May 16th, 2014. Posted in Bond Types, Contractor License Bonds, Latest News, License and Permit Bonds, Performance Bonds, Surety Bond Blog

     Forestry workers get bonded      
Forestry workers get bonded
We have been watching the recovery of residential construction recently, but are companies ready to get bonded when it comes to non-residential construction? There are some indications that now may be the time to take a closer look at this. As this sector of the industry begins to rebound, unforeseen problems are cropping up that will require many companies to look closely at their surety bonds.
 
Increased accidents on the job, problems with training new recruits and retraining seasoned workers who have been idle are just part of the reason that when getting bonded, companies need to consider the big picture.
 

Are New Workers Getting Bonded?

While the construction industry doesn’t bond individual workers, a practice common in service industries, it does need to take stock of its workers when businesses get bonded for new projects. As the industry begins to recover, non-residential construction is seeing an influx of new workers with little to no training regarding safety. This can lead to a higher incident of accidents and might even affect a company’s ability to get bonded in the future.

Are Returning Workers Ready?

Another factor to consider for any construction company, residential or non-residential, is that many of their best workers have been off the job during the recession. Construction workers that were your best men and women, with great safety records and high levels of proficiency, may have gained weight and even gotten rusty when it comes to their most important skills. Are they as alert as they need to be? Retraining workshops to brush up on old skills can be an effective way to ensure a good safety record for future qualifications for bid bonds, performance bonds and other requirements for construction projects.

Uptick in Construction Predicted

With current forecasts looking at an upswing in construction by as much as 7-10% past current levels, now is the time to be considering what you can do to ensure your employees are ready. Creating safety workshops for new and returning workers as well as encouraging older employees to take advantage of regulations to keep them safe will be key decisions. Recent reports of overweight returning employees dropping on sites from heat exposure are just the tip of the iceberg when it comes to safety. Putting those safety programs in place can go a long ways towards getting bonded at a special premium because of strong safety records.

Get Bonded with BuySurety

With the expected growth in construction over the next few years, it pays to do your homework and find the bond company that can help you to get bonded. BuySurety has been providing surety bonds to the construction trade, along with a host of other industries, for over two decades. Find out how fast and easy it is to qualify for low cost surety bonds, bid bonds, performance bonds and every other type needed to get bonded today. At BuySurety we know the construction trade and understand its needs, today, tomorrow and for years to come.

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Pennsylvania Surety Bond Requirements – New Laws

Written by JoAnn Smith on May 12th, 2014. Posted in Bond Types, Commercial Bonds, Contractor License Bonds, Court Bonds, Latest News, License and Permit Bonds, Pennsylvania, Performance Bonds, Popular States, Surety Bond Blog

     Pennsylvania surety bond requirements
New Pennsylvania surety bond requirements ensure kids attend school.
State legislature has passed a handful of new Pennsylvania surety bond requirements this year that will affect the parents of children who don’t send them to school, the amount of surety a medical plan organization must post and what kind of surety bond must be posted for a company to obtain a permit to demolish a building. While these may all seem like wide ranging regulations, the new Pennsylvania surety bond requirements are simply a part of a new wave of legislature that will see stricter laws in many areas for surety bonds.

Compulsory School Attendance in Pennsylvania

Although the Public School Code Act of 1949 is still very much in force that requires parents to send their children to school, this latest piece of legislature, Pennsylvania House Bill 1786, will add penalties for any parent that refuses to send their children to school. Unless a parent or legal guardian can produce evidence that they took all proper precautions to ensure the child under 13 years of age went to school, the parent can be fined. If the parent wished to appeal the decision, they can post a performance bond that assures the court they will guarantee the child will attend school.

Discount Medical Plans and Penalties

A bill is currently with Pennsylvania Legislature that will allow discount medical plans to be registered with the state. Pennsylvania House Bill 1851 will also create penalties for any such companies and require these companies to post a guarantee in the form of a surety bond of $35,000 to protect the financial interests of the members of the plan. The Pennsylvania surety bond requirements bill was introduced in November of 2013 and as of May 2014 was under consideration of the House Insurance Committee.

Pennsylvania Surety Bond Requirements for House Demolitions

With the passage of Pennsylvania House Bill 1877, the state will have established new requirements for any company that wishes to engage in house or building demolitions in the state of Pennsylvania. These businesses will now be required to obtain a permit before beginning any demolition projects and part of that permit will be obtaining a performance surety bond for the cost of the demolition project. For this, Pennsylvania surety bond requirements will need to be a minimum of $25,000.

Know Your Surety Bond Requirements

If you do business in Pennsylvania, or any other state, you need to know first what the surety bond requirements are for that business. State legislatures are continuously making changes to surety bond state requirements for various businesses. That is why it is so important to do your research first and find out what those requirements are for your state and business. If you are considering starting up a new business, changing the scope of your current business or expanding a current business into a new geographical location, contact BuySurety first. We can help you find out just what kind of surety bond requirements that business has for that state. Don’t get caught without the right surety bond coverage when making changes to your business. Talk to the knowledgeable customer service people at BuySurety first and get the right information to keep your company up to date, whether it is for Pennsylvania surety bond requirements or new laws for auto dealerships.

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Surety Bond Legislature Update for Virginia

Written by JoAnn Smith on February 18th, 2013. Posted in Commercial Bonds, Contractor License Bonds, License and Permit Bonds, Motor Vehicle Bonds, Performance Bonds, Reclamation, Mining and Removal Bonds, Surety Bond Blog, Virginia

     Virginia surety bonds
The Virginia State Bird – The Cardinal
In the Virginia legislature there were six House bills and four Senate bills passed that affected the posting of surety bonds. In the House bills were passed that affected the threshold of a bid bond, financial assurances for nutrient credits, the posting of a public official surety bond for an airport authority’s secretary treasurer, the requirements for a motor vehicle dealer’s license bond, the posting of a license and permit bond for a real estate appraisal management company, and the need for a public adjuster’s surety bond to be posted.   The Virginia Senate passed bills that will affect financial assurances for nutrient credits, the administration costs of subdivision bonds, claimant amounts on a motor vehicle dealer’s bond, and the posting of a public adjuster’s surety bond.      

House Bill No. 945: Bond Threshold

With the passage of Virginia House Bill 945 the threshold for the posting of contractor’s surety bid bonds with the Department of Transportation will be increased from $250,000 to $350,000. The Department of Transportation will also be permitted to waive bid bonds on any bid where evidence of a contractor’s application for a bond has been declined by the surety company when the contract is for between $250,000 and $350,000 and the contractor has been prequalified by the Departments of Treasury and Transportation with a surety bond from the Treasury Department through its self-bonding program. The Department of Transportation will be required to submit an annual report on:
  • How many companies were unable to obtain a bid bond
  • How many bond waivers were granted
  • How many contractors were enrolled in the self-bonding program
This bill was enacted on April 18, 2012 and went into law on July 1, 2012. For a full reading of the complete text to Virginia House Bill 945 simply follow our link to the legislative site in this bill summary.  

Senate Bill No. 77/House Bill No. 176: Financial Assurance

The Virginia Senate Bill 77 and House Bill 176 direct the certification of specific nutrient credits in soil composition by the Virginia Soil and Water Conservation Board to include financial assurances as part of the requirements. These financial assurances can be in the form of a posting of a surety bond. These two bills were enacted on April 18, 2012 and became law on July 1, 2012. For a reading of the complete text to Virginia Senate Bill 77 and Virginia House Bill 176 simply follow the links provided here in the legislative bill summary.    

House Bill No. 120: Public Officials

The Virginia House Bill 120 removed the requirement for the Tappahannock-Essex County Airport Authority’s secretary-treasurer to post a public officials surety bond for $50,000. They are no longer required to post any kind of bond at all. The bill was enacted on April 18, 2012 and passed into law on July 1, 2012. For a reading of the complete Virginia House Bill 120 you can use the link provided in this bill summary to the legislative page.      

House Bill No. 171: License Bond—Motor Vehicle Dealers

Virginia House Bill 171 has made changes to the current requirements for a motor vehicle dealer’s license bond. The new requirements will provide for the bond to include liability for the attorney’s fees, which had been excluded in the previous requirements. This bill was enacted on February 28, 2012 and went into law on July 1, 2012. For an opportunity to read the complete text to Virginia House Bill 171 you can use the link provided in this bill summary.      

Senate Bill No. 179: Subdivision Bonds

The Virginia Senate Bill 179 makes changes to the use of administration costs of a construction subdivision bond. Previously when a developer or owner defaulted, the local authority that holds the bond could use it for administrative costs. In the new regulations if the construction is completed and stays within the stated costs, the local authority can retain that part of the bond allowed for administrative costs that is not part of the construction costs estimate regardless of who actually completes the construction. Bill 179 was enacted on March 30, 2012 and went into law on July 1, 2012. For a reading of the complete text to Virginia Senate Bill 179 you can use the link provided in this summary.    

House Bill No. 210: License Bond—Real Estate Appraisal Management Companies

Virginia House Bill 210 requires real estate management appraisal companies to post a $25,000 license and permit surety bond to guarantee their faithful performance of their obligations under the law. This bill also provides for the aggregate liability of the surety company to not exceed the principle sum of the bond provided. The bill was enacted on March 30, 2012 and went into law on July 1, 2012. For a reading of the complete bill you can follow our link to the legislative site posting on Virginia House Bill 210.      

Senate Bill No. 421: License Bond—Motor Vehicle Dealers

Virginia Senate Bill 421 made two changes to the current provisions regarding claims on motor vehicle dealer license bonds for damages. The first change was that the claimant can recover damages up to $25,000, an increase from the existing limit of $20,000 on the current $50,000 surety bond. The second change was that after January 1, 2013 that amount awarded will be increased to reflect the increase by percentage in the Consumer Price Index for used cars and trucks per the U.S. Bureau of Labor Statistics. Instead of the total aggregate liability being capped at $50,000 as is done currently, any loss or damages that exceed $50,000 will be paid from the Motor Vehicle Transaction Recovery Fund. This bill was enacted on March 06, 2012 and went into law on July 01, 2012. For a look at the complete text to Virginia Senate Bill 421, please use the link provided in this bill summary.      

Senate Bill No. 520/House Bill No. 872: License Bond—Public Adjusters

The passing of Virginia Senate Bill 520 and House Bill 872 require any public adjuster to post a public officials surety bond in the amount of $50,000. This bond is to guarantee the compliant conducting of business according to all laws within the Commonwealth of Virginia. The bond must be issued by a surety bond company that is authorized to do business in Virginia by the State Corporation Commission and cannot be terminated unless 60 days written prior notice is given to such Commission. Senate Bill 520 and House Bill 872 were enacted on April 10, 2012 and became effective as of January 1, 2012. For a full reading of Virginia Senate Bill 520 and Virginia House Bill 872 you can use the link to their respective legislative pages that is provided in this summary.

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What is a Surety Bond for Construction?

Written by JoAnn Smith on December 29th, 2012. Posted in Contract Bonds, Contractor License Bonds, Surety Bond Blog

     what is a surety bond, contractor bond, construction bond
Bonded Contractor Works Smart
Do you know what the four kinds of surety bonds are for use in the construction trade? Well don’t be embarrassed if you don’t. There are plenty of people who have been in the trade for years and still couldn’t answer exactly what is a surety bond and why they need it. Basically a contractor bond or a construction bond is used to enforce certain kinds of regulations in the industry. You don’t need to understand how bonding works to use them, but it does help to know the four kinds you will most likely use in the construction trade.

Contractor’s License Bonds

For a contractor to even be licensed to work on just about any kind of project they will need to first post a contractor’s license bond. Working on a project without the contractor bond can make you liable for penalty fines and you might even lose your license or face legal action. The bonds are required by different entities depending on the project including the city, state, county, or even the subdivision in a residential development project. Since you need to bond to be licensed, if you don’t get it you will probably be also working without a license, another reason for big fines or more.

Payment Bonds

For any contractors who have successfully bid on projects worth more than $100,000, there is a federal requirement that they post a payment bond prior to being awarded the project. The details of how and why are covered in an act passed by the Federal Government called the Federal Miller Act and can be read online. This includes not only construction projects but also any publicly funded project that involves such work as repairing or altering a building. These construction bonds are posted to protect subcontractors and vendors from non-payment on projects, so that the owner of the project isn’t left holding the bill if the contractor can’t pay. If this should happen, then the surety bond is pulled to make those payments. Most bonds of this type will be indemnified to allow the surety company to be reimbursed by the contractor on these cost payments.

Bid Bonds

Not every project requires a bid bond to be posted. However, many will require them at the time that the contractor is submitting their bid for the project. The bond will ensure that when the contractor turns in their financial proposal that if they win the bid that the proposal was made in good faith. This way it ensures the contract will be entered into by both parties at the amount of the bid and in the manner proposed.

Performance Bonds

These are done to ensure to the owner of the project that the contractor will complete the project as stated and that the work will be not only of top quality but also completed within the timetable proposed. Often when a contractor is awarded a project both the performance bond and the payment bond will be required to protect the owner from financial problems on a project. If the contractor completes the project on time and the owner is happy with the quality of the job, all is well. But the posting of a performance bond assures the owner that if the contractor goes over the deadline or has to correct faulty workmanship, both of which will cost the owner money; the costs will be covered by the bond. Of course, bonding companies are not prone to issue a construction bond of any kind to a company that has not proven they are capable of meeting their requirements of the job. This means that for some contractors the first big hurdle will be to even qualify for the contractor bond. That is why it is so important for any contractor who wants to succeed to understand the bonding process so they can ensure they will qualify when the right project comes along.

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