When a licensed electrician is “bonded,” this means that they have purchased a written guarantee that their work will be completed on time and in a professional manner. The bond acts as an insurance policy and then ensures that the project that the electrician starts will be completed to the customer’s satisfaction. If for good reason the client is ultimately dissatisfied with the work performed, then a “complaint” is made with the linking agent and the client can be compensated. Of course, there is an investigation into the work done to make sure the claim is correct.
There are several types of “bonds” that an electrical contractor can purchase:
1 – BID BOND: The electrician generally issues a bid bond as part of the bidding process to the owner. This type of bond ensures and guarantees that, should the bidder succeed, the licensed electrician will perform the contract and provide the necessary bonds. “Bond” in this case refers to the electrical contractor performing the work.
2 – THE Performance Bond: A performance bond is issued by an insurance company or a bank and guarantees the satisfactory completion of the project by the licensed electrician.
3 – PAYMENT BONUS – A payment bond is what can guarantee the owner that the electrician will be paid the money owed by a “principal”. So if the electrician is hired by someone else, and then works on your property, the landlord (you) can benefit from a payment bond because the electrician and suppliers are guaranteed payment and will continue to deliver.
To summarize, if the electrical contractor is “tied” then there is a very good chance that the electrical project will be completed to your 100% satisfaction. Electrical contractors’ reputations and licenses are at stake, they want to do a good job and get good references.
One thing most people don’t know is that these surety companies (usually insurance companies or banks) charge a significant fee to the electrical contractor. Some of the smaller utility companies will probably try to charge the customer for this, whether they know it or not.
The bond also guarantees the work of the electrician for as long as that person lives. Therefore, when hiring an insured electrical contractor, be sure to get Section Bonds the name of the bonding provider and details in case you need it for future reference or claims.
Additionally, the linking company maintains a good service record for electricians registered with them. It is always a good idea to check the references through the surety company and see if any complaints have been filed against the electrician.