Job Bonds
Understanding Different Types of Construction Bonds
A builder who purchases constructor bonds is more trustworthy. A person who needs to have a home or office space built will be more likely to work with a bonded builder than one who has not purchased construction bonds. Construction bonds ensure that the construction company does the job that it says it will do and that the job is completed on time.
A construction bond works both ways in that it protects the construction company as well as the client. There really is no reason for a construction company to not have bonds. Even a relatively new company with little or no experience in this line of work can obtain a bond within a week's time.
Following are some reasons why a bonded construction company has an advantage over the competition:
The reason a client is more likely to work with a bonded company is that the bond provides a form of insurance for the construction project. If the project is not finished on time or is not done the way that the construction company stipulated in the contract, then the client will be able to claim remuneration.
A bond will cover any project. It does not matter if the builder is constructing an apartment complex or a small office. The bond will cover both the builder and the buyer for as long as the project takes to be completed.
Construction Bonds is actually an umbrella term; there are nearly half a dozen different types of bonds that will protect both the builders and the client. These bonds cover the project from the beginning stages right through to the end. Following are the different types of construction bonds that a builder will want to have:
Bid Bonds: These bonds are also known as tender bonds. In many cases there will be a number of construction companies bidding for the same project. Providing a bid bond up front shows the client that the bidder is reliable and can be trusted. Such a bond is usually backed up by a performance bond.
Performance Bonds: A performance bond will provide a set amount of money to the client should the builder default on the project. Such a bond reassures the client that the project will be completed come what may.
Maintenance Bonds: These bonds are in effect a contract stating that if the building work is defective, the construction company will make the repairs. Such a bond also ensures that the building company will maintain the building after it has been fully constructed.
Stage Payment Bonds: These bonds, unlike the bonds mentioned above, mainly benefit the construction company. While a construction company may have won a bid to do the job, it takes a substantial investment of money in order to buy the tools and materials needed for any given job. Stage payment bonds provide the money that a construction company would need to get the job going.
Payment Bonds: These bonds are also important. They benefit the company's employees or subcontractors that may be hired. As the name implies, payment bonds provide a guarantee to those that are hired that they will be paid on time and in full. Payment bonds are the only bonds that benefit the people actually doing the work.
About the Author
The writer is Joe Murphy with extensive experience in a variety of industries through significant transitions. For more information on Construction Bond, visit http://www.easyquote.ie/business-insurance/index.php/construction-bonds-guarantee-bonds
What does "bonded" mean when applying for a job?
I am currently applying for a job and there is one question that says "Have you ever been bonded?" What does it mean to be "bonded"
A bond is a type of insurance policy that pays an employer a certain amount of money to cover the loss if their employee is convicted of theft or embezzlement. It is a common requirement of those employees who are in a position of responsibility with regard to the handling of money, such as cashiers or cash office clerks.
Other employees who may be bonded are those who normally work in customer's homes or places of business, such as housecleaning technicians, electricians, plumbers, etc. who may have unsupervised access to the owners' valuable items.
Job Bonds
JOBS - BONDS - JURY TRIALS - FEB 6th 2010.wmv
How to Negotiate Bail Bonds in California
There are several bail bond companies in California. All these agencies are licensed by the California Department of Insurance. If you look in your local phone book under "bail bonds" you will see that these companies have a license number located on their advertisement. To see the license status you can go to www.insurance.ca.gov and put this number in the license look-up section. Due to the rules and regulations of the California Department of Insurance (CADOI) all bail bond companies must charge a 10% or an 8% premium for your bail bond. Although all California bail bond companies must charge the same, there is still room for negotiation.
You will not be able to negotiate the bail premium lower than 8%. For instance, if your friend is in jail and his bail is set at $25,000 you must pay 10% or $2,500 to bail him out. Some companies have a special 8% rate filed with the CADOI. In this example, you could pay a lower premium at $2,000 and save yourself $500. In most cases a bail bond company will almost always want to offer you the 10% rate. So even though they have an 8% filed rate they will still want to charge you a 10% premium. Therefore the negotiation begins by asking the bail agent on the phone if they have an 8% rate.
The 8% rate holds some conditions which you must understand. Either the co-signer or the defendant must be in the U.S. Military, a Veteran, a Union Member, a member of AARP, or must have hired a private attorney. If you can't find a co-singer that has one of these criteria you will have to pay 10% or $2,500 in our example above. However, you can still negotiate the down payment of the bond.
Almost all bail bond companies accept payment arrangements but you will need to have a down payment. Many companies will advertise "No Money Down" but this type of program is reserved for individuals that own a home with equity or for someone who has a great job and credit who can pay the full amount or down payment within 24 to 48 hours. A great job is someone who works as a nurse, computer programmer, engineer, and so on. Actually the job title of the co-signer or defendant will make a difference on the amount you must put down.
With a good job title, which can be verified with paystubs, you can put as little down as 3%. In our example above the down payment would be $750 or 3% of $25,000. When you discuss payment arrangements make sure the balance is interest free. Most bail bond companies charge no interest so if you're being charged interest you can find another bail company that doesn't. The payment arrangements can be as little at $200 a month, however, the bail company will want you to pay as much as you can as fast as you can. So a discussion of payment arrangements could start off at $400 every 2 weeks until the balance is paid. So talk to your bail agent to get the payment arrangements that work for you. The amount of co-signers can be negotiated as well.
For instance, a person currently in jail may have several prior arrests so the bail bond company may want two or three co-signers. If you have good employment then ask if you can be the sole co-singer or call another bail company and see if they will accept you as the only co-singer. Sometimes, a co-signer is not available. The person negotiating the bail may not be employed. If the person negotiating the bail is unemployed then he/she cannot be a co-singer. Ask the bail agent if the defendant can co-sign for himself. If the person in jail has a great job, he may be able to co-sign for himself.
Actually a person in jail can sometimes end up co-signing for himself with "no money" down. There are numerous advertisements inside the jail for a defendant to call. If he calls and explains that he has a great job and had a credit card in his wallet when he was arrested, he may be able to co-sign for himself. Once the bondsman verifies employment and confirms with the jail that a credit card exists on the books, he may go to the jail and post a bond for the defendant's release. Upon release the defendant will then be required to meet the bondsman, sign the contracts and pay for his bond or down payment.
Other times the defendant may be unemployed but have cash on his books from when he was arrested. In this case, all you would need is a co-signer with a good job. More than likely you will be able to find a bail company in California to post the bond and wait until the defendant is released to collect the payment. There are many situations where you can negotiate with a bail agent for the release of someone in jail.
Remember the parts you can negotiate with a bail company such as the 8% rate, the down payment, the payment arrangements, and the amount of co-signers. If the co-signer or defendant has a limited budget but good employment there is a way to get out of jail fast. Talk to your bail agent by giving him the circumstances of your situation and he may be able to help you.
About the Author
Lawrence Hemsley was licensed as a Bail Agent in 1999 and is the owner of Cherry Bail Bonds located in Sacramento, California. He holds a BA in Psychology with a minor in Criminal Justice and a Master's degree in Business Administration. Click here for Sacramento Bail Bonds.