Q. What is a bond?
A. A bond provides both performance and payment protection to ensure the construction project is completed according to Contract, Plans and Specifications and all related expenses are paid.

Q. What does it cost for a bond?
A. Honsador does not charge for issuing bonds but looks to the sale of building materials to cover its involvement.

Q. Who requires the bond?
A. Typically the lender who’s financing the project or when there is no lender involvement, the homeowner who wants added protection.

Q. What can I expect once all the required bonding application documents are submitted?
A. The Contract, Specifications, Plans and all pertinent documents are collectively reviewed and evaluated relative to Honsador’s bonding obligation.  Once the bond is approved, it is printed and distributed for signatures.  We work directly with the lender or homeowner to assure that there is a commitment for funds.

Q. When can I start the project?
A. The start of the project is usually driven by the recordation of the loan.  Contact the lender for more specific instructions.  For owner-financed projects, a fully executed bond is an indicator that the project can commence.

Q. What role does Honsador play during construction?
A. Honsador administers the bond by receiving funds as they are disbursed according to the contract’s payment schedule.  Funds are then available to the contractor to pay for labor and materials as those expenses are incurred.  In certain cases, Honsador will assist in resolving disputes and problems should they arise.  Upon your request, we will file the customary Notice of Completion that signifies the completion of the project.

Q. When does the bond cease?
A. The bond obligation ends once the project is complete, all expenses are paid and the 45-day lien period has expired.  The lien period commences 45 calendar days from the date stamped on the Affidavit of Publication by the Circuit Court.