You should have said “yes” to the bond and “no” to your lover. Your lover jilted you and you have nothing but the dispute resolution system and more expensive lawyers to fall back on. A performance bond guarantees you that the contractor will perform the contract. A payment bond guarantees you that the contractor will pay all of the subcontractors, laborers and materials associated with the job. Bonds are like any great system of protection – you many never need it and it costs you money. In most cases around between ½ – 1% of the price. Might have come in handy, huh, Stink?
Had you called your attorney before you signed the deal with your lover, you would have learned Rule No. 1 – Risk management is equally crucial at all stages of a construction project. Your risk management team, if you want to call it that, gambled and lost when they determined there was no reason to protect against the contractor failing to perform or pay. Now you have a bad taste in your mouth right? On your next deal, adjust your risk m anagement values and make the possibility of bonds part of it and your love will not be so stinky next time … YouDig?
