A group of guys want to start up a general contracting company, and they have the necessary expertise in bidding and running government projects. What they don't have is the financial backing so they are looking for a partner.
Will the insurance company require collateral in equal amount to the bond? Do they accept less? Do they require more?
2006-12-12 09:31:47 · 2 answers · asked by eddygordo19 6 in Business & Finance ➔ Other - Business & Finance
Most government contruction projects require the general contracter to post a performance and payment bond for the value of the project.
2006-12-13 09:59:07 · update #1
Some companies will accept less ( As in a percentage ) of the total bond value. THe whole point of the bond is to provide the government security if you cant perform the work. The work will still be done by the Bondsman. Check out the Davis-Bacon Act for more info on your requirements. Also, check out the FAR and your local SBA for free classes that they provide!
2006-12-14 05:36:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
What type of bond will they be getting from the insurance company?
2006-12-13 09:52:53 · answer #2 · answered by ps2754 5 · 0⤊ 0⤋