Why You Need A Surety Bond When Having A Home Built

When you sit down with a contractor and sign a contract for your project, it is expected that the contractor will do everything they said they would and things will work out just okay. However, for some people, this outcome is not the case. In some instances, contractor can default on their end of the deal. Having a surety bond, like with NFP, P & C, Inc., in place in these instances can serve as a necessary layer of protection.  

Legal Advantage

Say you paid for granite counter top surfaces throughout your home and the contractor instead put in some other low-cost material and they are refusing to fix it for you. Having a surety bond can come in handy in this instance because it gives you legal ground to stand on.

This legally binding document basically states that the contractor must adhere to every item and term in the agreement, including choosing the materials you requested. In the event you had to take the contractor to court, this document could be critical in proving fault on their part.

Financial Backing

For some people building a home, the contractor may run out of money. When this happens, the entire project is put in jeopardy and the unfortunate homeowner could be left to start all over and find another contractor.

Surety bonds can help you avoid this type of scenario because a part of the bonding process is ensuring that the contractor has the financial means to take on the project you are planning. If they don't, they won't be granted the bond and you will be better protected in the end.

Time Tracking

One of the more common complaints of people going through an extensive construction project is the amount of time it takes. Keep in mind that a high-quality home with superior craftsmanship can't be built overnight and that mother nature can slow down the process. However, aside from these factors, a contractor might overextend themselves or under staff the project, which can lead to delays.

The surety bond comes in handy in this instance because time tracking is generally a part of the contract, meaning that the project must be completed by a preset end date. If it's not, the contractor could be liable for any additional costs you incur as a result.

If you're planning to have a home built, make sure you are not overlooking a surety bond. A surety bond will put you one step closer to having the home you want, on your terms. Protect your investment with this bond.