Do home improvement contractors have to be bonded?

Answer 1

I don't think they are normally required to be bonded. But the owner can require a bond. It will reduce the number of contractors willing to take on the job and the bonds are expensive, so the contractor will charge the owner for it, somehow. I think the method of paying for the work is most important. paying one thrd up front is a big mistake. You should not pay for any work or materials not already on your property. If the contractor says he needs money for the materials. Tell him to get the materials delivered onto your property, then when he gives you a paid receipt from the supplier, and you verify payment with the supplier, pay him for the materials. If he can't fund the start up of the project, get another contractor. Pay for the actual work when it is in place, say at 25% completion, 50% etc. But dont pay it off until you are satisfied everything is proper. Construction management is not for nice guys, its for business people.

One thing you have to be sure of however is that is that any contractor you select have proper insurance. He should have Workmen's Compensation as well as liability insurance at the very minimum. Be sure to ask to see copies of these policies prior to signing a contract for a major project.

Workmen's Comp. is really necessary for any project whether it is major or not, in order for the homeowner to be protected. Workmen can be injured whether it a few hours for a job or weeks or a month. I say that, but I have a good carpenter/handyman that helps me tremendously and he doesn't have workmen's comp. so I realize that I am speaking idealistically here and maybe not practicing what I preach but if he injures himself on my property and requires expensive care, I could have a big problem.