Electrical Bonding Requirements
Just Ask Vozz – Should you always hire a bonded electrician?
There are several types of “bonds” that an licensed electrician may acquire:
1 – THE BID BOND: A Bid Bond is issued as a part of the bidding process by the licensed electrician to the property owner. This type of bond assures and guarantees that should the bidder be successful, the electrician will execute the contract and provide the required surety bonds. “Surety” in this case refers to the electrical contractor doing the work.
2 – THE PERFORMANCE BOND: A performance bond is issued by an insurance company or a bank and guarantees satisfactory completion of the project by the electrical contractor.
3 – PAYMENT BOND – A payment bond is what can guarantee the owner that the licensed electrician will be paid any money that they are due from a “principal.” So, if the licensed electrician is hired by someone else, and then they do work on your property, the owner (you) can benefit from a payment bond because the electrician and suppliers are guaranteed payment and will continue performance.
To summarize, if the electrician is “bonded,” then there is a really good chance that the electrical project will be finished to your 100% satisfaction. The licensed electricians reputation, and license, are on the line, they want to do a good job, and make sure you are happy.
One thing that most people don’t know is that these bonding companies (usually insurance companies or banks) charge a large fee for the bond. Some of the smaller licensed electricians will likely try to charge this back to the customer, whether they know it or not.
The bond also guarantees the work of the electrician for as long as that person is living. So, when hiring a bonded electrical contractor, make sure you get the name of the bonding agent and details in case you need it for future reference or claims.
Also, the bonding company keeps a good record of service for the electrical contractors registered with them. It is always a good idea to check references through the bonding company, and see if there have been any complaints registered against the electrical contractor.
The key thing to remember when trying to chose between a bonded or not bonded electrical contractor is this: A non bonded electrical contractor may always be able to do the same work as a bonded one. The bond assures the work under most circumstances, because it’s an outside party providing the coverage. Ultimately it is up to you to determine whether to chose a bonded or not bonded licensed electrician. The one thing that is recommended under all circumstances, is to make sure the licensed electrician you hire is licensed in that particular state, and knows all the electrical codes for the area. That, however, is covered under another article!
About the Author
This article was brought to you by Jim Christian and a licensed, insured Miami Electrician and Hollywood Electrician at Vozzcom Electric.
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