|a question about hiring landscapers (and other contractors)||<– Date –> <– Thread –>|
|From: Thomas Lofft (tloffthotmail.com)|
|Date: Thu, 19 Jul 2012 07:20:18 -0700 (PDT)|
Sharon is exactly correct, again.Bonding is an insurance policy (a bond) of assurance that a job will be completed as contracted in the event of failure of the original contractor to perform (subject, of course, to the bond documents definition of 'failure'). The costs of a bond are that it typically adds a fee cost of 1% of the total project bond amount. On a small value bond, it could easily be upwards of 2.5%.The limits of a bond are that it only assures the completion of the job as specified in the original contract documents, including drawings, specifications, and the contract writing. If it wasn't in the contract, it won't be covered by the bond.It's kind of cute to hear bureaucrats throw out another euphemism "Licensed, bonded and insured" without ever thinking about the actual meaning of what they are saying.A bond is seldom warranted for a small project or a continuing service contract, but it's possible and just another item that adds to cost. What's more important? Assurance or accepting risk to preserve affordability?I last completed a $3.5M private school project without getting a GC bond to save the cost increment, having made a personal diligent effort to check the references and past completion history of each of the competing GC's, especially the one we engaged. We (the BOD, actually) agreed to not require a bond and save the $$ for better quality finishes.At Liberty Village, we share a lot of work ourselves as well as the meals, open space, and costs. We do hire a contractor to do seasonal mowing of 24 cuts a season. The first cut was excellent, four years ago, so we kept him on. I don't know if anyone even asked him about insurance, and hopefully, we will never arrive at a point where the local government thinks its essential to license lawn mowers. We did hire outside contractors to provide and install 800 trees for reforestation. Same story. No bond. License? Insurance? It was the quality of the nursery stock and planting that was most important.We hired a single GC to do the bulk of our land development, grading, utilities, roads and paving, about $750K of work. We definitely verified insurance. No bond, but a daily scrutiny of work by a very knowledgeable civil engineer member of the community. Happy Contracting!!Tom LofftLiberty Village,, MDOn 18 Jul 2012, at 9:01 PM, S. Kashdan wrote: > The Jackson Place Cohousing community in Seattle, Washington has a question > about whether your cohousing community considers it necessary or > important to hire licensed, bonded and insured landscape > contractors/professional gardeners for the work that community members can't > or won't do. We don't hire anyone who isn't insured. Period. Full stop. End of story. Bonding as we understand it is for large construction jobs, not the kind of thing we usually hire people for. Licensing, I think is required for insurance, but we don't ask for that information. It's the insurance that is important in case they are hurt on the job or cause a lot of damage.Their insurance certificate is sent directly from their insurance company to our management company. That is important so it can't be forged. We may pay more but also are assured that the people are professionals and in the business full-time, which means less hassle for us. Sharon ---- Sharon Villines Takoma Village Cohousing, Washington DC http://www.takomavillage.org Thanks for writing, TOM
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