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. Why would I need a bond?
A. If you are financing the construction through a bank, then typically the bond is a lender requirement for loan approval.  If you are funding the project personally then the bond provides added protection that your project will be completed.

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 my contractor 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 your 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 contractor’s request, we will file the customary Notice of Completion that signifies the completion of the project.