If You Are Going To Get Your Job Bonded, Make Sure You do This 1 Thing First!

Alex BarthetBonds

If you are going to get your job bonded, make sure to do this one thing first!

  • Ensure the necessary documents are recorded with the notice of commencement
  • Doing this makes lienors aware that the job is bonded
  • It also keep your property free and clear of liens

You are working on a project at the initial stages. You have picked an architect. Maybe you have even picked a contractor and decided that you are going to have your contractor bond the job. What is the one thing you need to make sure you do to protect yourself once you have decided to go through the time, effort and expense of getting your contractor bonded?

Ensure the notice of commencement references the bond, and a copy of the bond is recorded with the notice of commencement. It sounds simple, but you would be surprised how many clients come to us after making the mistake.

It may look innocuous and written off as a simple mistake. So, I forgot to reference the bond. So, I forgot to attach it to the notice of commencement. What is the big deal? Here is the problem, if you fail to reference the bond in your notice of commencement or attach a copy of the bond to the notice of commencement, then lienors are unaware that the job is bonded.

This means that the plumber, the electrician, the roofer, the foundation contractor, all of your subcontractors on the job are going to start sending you notices to owner and may even lien your job. Think about it: you have gone through the effort and expense of getting the job bonded to keep your property free and clear of liens. Maybe your lender even mandated that you get the job bonded to keep the project free of liens. Now, because of this one avoidable mistake, all of your subcontractors can put liens on your project.

So what do you need to do?

Make sure that before the notice of commencement is prepared and recorded, you review it. Then, ensure that the surety section of the notice of commencement lists the surety bond by name and physical address and a copy of the bond is attached to the document when it is brought to the clerk’s office to be recorded.

These simple steps will keep your property free and clear of liens. It will give you the value that you intended to achieve by paying for this bond.