Author: Connie Anderson

What are the Most Important Forms of Contractor’s Insurance?

General Liability Insurance

When building a home, most people feel that their job is half done when they get their blueprint. But Most people don’t realize that there’re many other things that homeowners and builders should consider when building a home. Contractor forms are among them, which are essential for confirming the agreement between the homeowner and the contractor. The agreement won’t hold any value if these forms are lacking.

Firstly, any transaction must be supported by the legal documents. Without these legal documents, the whole project will be unprotected. However, having a contract document is very important. Additionally, he contractor documents must have a warranty.

Whether your firm is small or big, you cannot ignore the contractor forms. Contractors Insurance California is one of the most important form of coverage for construction businesses.  The form should include all the necessary details about the contractor like the physical address, contact number, and license number. Make sure that you are not working with people who do not hold a license to build. You can also consult the insurance provider of the company if you want to make your deal stronger. You should mention the expiry date and signing date of the agreement. The form should also have provisions for remedies if one of the parties does not abide by the agreement.

There are different types of contract forms; one of them to look into and have on hand is an Attachment A & B form. The attachment A form has details about the resources and work, while attachment B has allowance details. Another one is a repair contract form. This form has all the details about service or repair job when subcontracted to another contracting firm.

An estimate recap form talks about the entire work process and its estimation. While a full construction form has all the details about construction. A bid form states that the contractor provides to the person with whom he will sign an agreement. It includes a time limit and cost to construct the building, this information is also needed to properly quote insurance for contractors.

Lastly is the AIA Form. This form, similar to other construction warranty documents, should have all the details about the project. It should include all the tasks that have to be completed and the budget for every part of your home. Decide when the construction work should begin and when it should end. Finally, you should decide and secure your mode of payment with the contractor.

Contractor forms are crucial for you as well your contractor to ensure that the work is completed smoothly and successfully. To know more about managing the materials and the roofing for your home, you can get ideas from construction books and roofing books.

In conclusion, always be mindful on the kind of insurance you buy. Be cautious to not to squander your money on insurance choices that you will not require. Always contact your insurance provider and seek advice from them initially before deciding. They could offer you a few options whether to select one or more insurance plans to completely secure you or anything you want to get safeguarded. If you see that the policies offered are more than your proposed spending plan, you can continuously request for various other alternate options.

How to Get your California Contractor’s License Bond

Contractor’s License and Bonding

If you are willing to become a constructor and yet don’t know how to get started, we discuss how to get your California Contractor’s License. This is a not particularly difficult occupation, but like every other profession, only hard work is your way to the top.  Quote and Shop for your bond with a reputable contractor bond company like Contractor Bond – California Contractors License Bonds for $65.  A few standards are set by the CSLB, and you need to achieve those to get the California Contractor’s License. To do that, you need to consider the following points.

For a completed technical training or apprenticeship, request credit for the four-year requirement. There is no basic minimum educational requirement to sit for this exam. But if you have any contractor based course or apprenticeship previously, you can easily ask for the credit towards the end of the four-year course.

You need to pass the California State Contractor’s Exam, and you must have four years of experience to do that. The different experience level can decide whether you become a contractor, foreman, journeyman or an owner-builder. Experience should be verified. Some of the sources you can efficiently use are real estate agents, a client for whom you have completed any project successfully, your employer, building inspectors and any other qualified contractor. The source will need to fill up a part of your application form. Then only your application will be accepted, and you can sit for the state level exam.

Application for the original contractor’s license can be downloaded online. You can easily download and print the needed forms from the CSLB website. It includes the main application for the certification exam. Once printed, carefully fill out the form as inaccurate information or incomplete forms will be rejected or at least delayed in processing. Also, this is a costly exam. It costs you around $300 to sit for the exams so do not lose money due to carelessness.

Prepare well for the test. The contractor license exam is not a difficult one, and you can pass it on the first go but only if you prepare well. To pass and be a professional contractor, consider taking online courses on contractor license exam. You can check out California contractor exam prep courses for this purpose. Detailed preparation can help you to enhance your knowledge and concluded. As you take the mock tests, you can quickly prepare for the exam scenario.

There are different specializations which you can pursue during the course. The state of California has no less than forty-three different options for you while you are taking the course. After getting the license, most people prefer to become a general engineering contractor or a general building contractor. You may be required to purchase a bid bond for specific projects in the future. These designations can be further honed by becoming a niche expert. Among the forty-three different choices, some of the popular choices are Concrete Contractor, Landscaping & Electrical Contractor, Masonry, Pipeline, and Roofing Contractor. There are of course many more specializations to choose from.

We wish you best of luck as you start your career in this field. A career in construction can be prosperous if sincerity and hard work are blended in perfectly. When you start your own business, your financial gain inflates as well.

Why Performance Bonds are Necessary for Your Project

You have probably heard more than one horror story about a contractor not showing up to finish the job or doing sloppy work.  Sometimes the story is a little different and the project went way over budget and took far too long to complete.  It makes you apprehensive about hiring a contractor for your project doesn’t it?  There is a solution to this, you can insist on a performance bond.  Let’s look at why a performance bond is necessary for your project and how it can protect you.

What are performance bonds?

Let’s start by defining what a performance bond is.  These bonds are issued by an insurance company between you and the contractor they ensure that the contractor will fulfill the duties outlined in the contract.  If for example you hire a contractor to build your dream home, you want to make sure that the money you pay up front goes to the cost of building the house and not the contractor’s next vacation.  Here is a closer look at what performance bonds are.

What’s involved in a performance bond?

Following the house building example, once you reach a tentative agreement with a contractor to build your home they would contact an insurance company to get a performance bond.  How much they pay for the bond will depend on the overall cost of the project and the reputation of the builder itself.  Is your contractor a straight shooter who has a good reputation for getting things done?  Has he been taken to court before because of inferior work?  All of those things will determine the cost and whether he can get a performance bond.

Protection for both of you

At the end of the day either the contractor will complete the job according to the terms of the contract or he won’t.  If your house gets built on time and according to specs the contractor gets paid and everyone goes home happy, but when that doesn’t happen performance bonds give you some recourse.  Should the project take too long, and we’re not talking about a day or two but weeks too long , or the contractor runs out of money and can’t complete the job you can go after the surety company.  Because of having the performance bond in place you can recover your costs and expenses.

Is it really necessary to insist on a performance bond?

That really depends on the scope of the project. If you are having your dream home built and investing your life savings, then yes, make sure you protect yourself. For small projects or working with a contractor that you’ve known for years, you can probably bypass the performance bond process. Remember it is always better to be safe than sorry!