Construction has been part of society since the use of clay and mud. It has developed through the years by countless innovations that made a huge difference.
As it is one of the foundations of our culture and civilization, people from all walks of life use construction services in order to build their business establishments, buildings, or their dream homes.
However, there are a lot of processes involved in the construction of any infrastructure. You cannot just choose one plot of land and say that it is yours.
We are now far from ancient times wherein a single paper does not hold property ownership. These days, you need to have all the legal requirements to own land and build your property.
If you include business, it gets even more complicated as the government would monitor you even more.
The Contractor’s Life
On the other hand, this is for your benefit wherever you are in the circle of influence. The government will act as the regulating body, and they would make sure that everything follows the law.
Meanwhile, the building construction shall commence once everything is ready. There are other requirements that you need to meet, though, but this depends on your location.
If you are here in California, then there are specific rules that you need to follow.
Being a contractor in different parts of the US is different because each state has its laws about that subject.
Notably, it is needed for you to have a contractors license bond in California as the law states. However, some industry people would try to dissuade you from having this license bond because it is “complicated” or “expensive.”
The $15,000 you need to pay may sound like it, but the reality is far different than what they described.
As a contractor, it is vital to secure this contractor bond before doing any work. Some people might think that this is for your protection, which can be applied in that sense.
As long as you have it and are following the law, you do not need to worry about getting in trouble. However, this bond acts as an agreement between you and the government.
It gives everyone involved in this project an assurance that everything would work out fine in the end.
What Is This Bond?
The contractor’s license bond is primarily used for the protection of the shareholders in the property. As a contractor, you should not steal anything from the building like the materials and equipment.
It also protects the investors from possible overcharging, which happens all the time in “underground” deals. As long as this bond stands, it provides them with the assurance that you would not do anything to harm them.
You might be thinking that this is not a good thing for the contractors. It sounds like you have to pay a lot of money for the protection of other people.
However, this is for business; you cannot just make any promises without proof. What would happen if any accident occurs and the building fails in the process?
It should be you, as the contractor, who would be held reliable because you have to make sure that nothing terrible happens like everything falling apart.
It sounds a little negative but there is a reason why the California Contractors State License Board requires this document. They want to make sure that the city’s infrastructures are safe enough for people to use and stay in all the time.
It should be made from high-quality materials, and the process did not use any shortcuts. The people will hold the organization liable if any building falls within their watch, along with the government.
As a contractor, you can also take it in as a goal for yourself. You are the one who is going to make sure that infrastructure is of high quality.
Again, many companies would be coming for your business because they are protected under your service. It is also important to note that you do not need to pay $15,000 as the fees depend on your credit score.
The normal range for bond fees starts at $99, paid annually, and you are already set to do business.