What is an Alaska Construction Contractor Bond?
Considerably viewed as an important gauge of the economy’s strength, the US construction industry likewise mirrors consumer confidence, service, and unemployment trends. As the unemployment rate plunges, investments in both residential and commercial construction are inclined to swell, hinting at a boost in consumer confidence and increased spending that usually comes with that trust. With consumer confidence and increased spending, comes the new formation of new businesses and the purchase of residential home structures. The swell in business activity will be escorted with a multitude of challenges and unforeseen problems that call for the establishment of a preemptive measure. One preventive action that the state of Alaska has instituted is the Alaska Construction Contractor Bond.
The Alaska Construction Contractor Bond serves as a good guarantee that a construction firm will not hold any business dealings, propose a bid, publicize the business or be in a joint venture with anyone if he/she does not have a license. It is also an unerring attestation that the firm offer bids with sober intentions (Bid Bond), completes projects in a timely manner (Performance Bond), will consistently and dutifully compensate workers for services rendered (Payment Bond), and will thoroughly provide materials/equipment/supplies as stipulated within purchase orders (Supply Bond). It is likewise a clear demonstration of earnestness to resolve confusion or disputes when defective materials or workmanship has been divulged (Maintenance Bond), and will build or renovate public structures according to local specifications (Subdivision Bond).
Why do you need an Alaska Construction Contractor Bond?
The Alaska Construction Contractor Bond is significantly necessary because your enterprise is vital to you and your profession is an important calling. Having this bond prods existing clients and prospective patrons to look up to you as a reliable contractor doing business with reliability and fulfilling business commitments with a sense of decorum.
What is the cost of an Alaska Construction Contractor Bond?
The Alaska Construction Contractor Bond amount depends on what kind of contractor the applicant is —
- For general contractors, the bond is for $25,000
- For general residential contractors, it is for $20,000
- For mechanical contractors, specialty contractors, and home inspectors, they shall post a $10,000 bond
- For contractors whose work on one project has an aggregate contract price of $10,000 or less, the bond to be posted will be $5,000
More details about the Alaska Construction Contractor Bond
Before getting bonded, you need to become a licensed contractor first. You have to be familiar and must have abilities vital to managing the day to day activities of a construction business. Or, you must be represented by another person possessing the essential knowledge and experience, who will serve as your qualifying individual.
How do I get an Alaska Construction Contractor Bond?
The Alaska Construction Contractor Bond is very much dependent on your financial credit report and reputation as a business owner. Eligible candidates with substantial financial documentation and exceptional business performance are expected to pay lesser than those who have a dubious credit history.
Getting the Alaska Construction Contractor Bond is simple. Choose a reliable surety company and call ASAP! An experienced surety professional will enthusiastically provide you with answers to whatever concerns you have in the operation of your business.