Contractors who want to work in the city of Midland must register with the city before they begin building or renovating properties. This allows the municipality to monitor the work being done and helps ensure the structural integrity of the buildings. In addition to registering with the city, contractors must purchase a bond before they can request a building permit.
If you’re planning to work as a general contractor in Midland, you’ll need a bond in the amount of $10,000. Before you buy one, you may find it helpful to understand contractor bonding and how it works.
Bonding for Contractors Basics
Bonding for contractors helps protect the physical and financial security of Midland’s residents. The bond is an agreement between you, the city, and the bond issuer. Each of these parties has an interest in you completing your work as promised.
Ideally, your completed project is structurally sound and visually appealing to your customer. It also should comply with local building codes and community guidelines so residents can safely use the structure for its intended purpose. The bond gives the city assurance that you’ll follow through with your end of the agreement.
If you don’t complete the work as promised, the customer can file a claim against the bond to recover costs. This can happen for a number of reasons, including bankruptcy, damaged materials, and poor construction techniques. The bond company then evaluates the claim and decides whether to compensate the customer or pay another company to complete the work as originally agreed.
How Is Contractor Bonding Different From Insurance?
A bond is not the same as an insurance policy. Your liability insurance protects your business, and someone may file a claim against your policy to pay for injuries or property damage caused by your employees or equipment. For example, a piece of equipment may break a window or dent a vehicle — your liability insurance can cover the cost of the damages.
A bond, on the other hand, protects the customer, who may file a claim if they believe you haven’t met your contractual obligations. They can’t ask the surety company to pay for repairs caused by your equipment. They can seek compensation if they can demonstrate a problem with the quality of your work or if you don’t complete the job.
What Is a Licensed, Bonded, and Insured Contractor?
A licensed, bonded, and insured contractor has a license from the state or local government that indicates they have demonstrated their competence through training or experience. These individuals also have purchased a surety bond and carry liability insurance offering different types of protection if something goes wrong at the job site.
How Does a Contractor Get a Bond?
To get a bond, you can complete an application online. After you make your payment, you’ll receive a copy of the bond, which you can then send to the city of Midland’s Code Department.
You’ll need to submit an official copy of the bond, which must go through a review. The city of Midland will notify you if there is a problem with the bond. Otherwise, you are officially bonded with the city of Midland.
How Much Does it Cost to Get Bonded?
The cost to get bonded varies depending on the type of project and the bond amount requested. For this reason, the only way to know exactly how much it will cost to get bonded is to speak with a professional about the scope of the project. Call us today to discuss your upcoming projects in the city of Midland and get a personalized bond quote. Our team is here to help you understand the process and get the bond you need for the job.