Why Is the Bond Required?

The bond is required by Berwyn to:

1. Ensure Compliance: Guarantees contractors follow local laws and building codes.

2. Protect Public Property: Covers damages to sidewalks, streets, and other public assets caused by construction.

3. Promote Accountability: Holds contractors financially responsible for fulfilling their obligations and ensures professionalism in the industry.

Who Needs the Bond?

This bond is required for:

1. General Contractors: Individuals or companies managing construction projects, including residential, commercial, or public works.

2. Builders: Contractors overseeing new construction or major renovations in Berwyn.

3. Contractors Working on Public Property: Those whose projects involve access to or alteration of city property, such as sidewalks or roads.

If your work requires a general contractor license in Berwyn, this bond is an essential part of the process.

How Does the Bond Work?

The Berwyn City General Contractor Bond is a three-party agreement involving:

• Principal: The general contractor or business applying for the bond.

• Obligee: The City of Berwyn, which requires the bond to enforce compliance.

• Surety: The bonding company that issues the bond and guarantees payment if a valid claim is filed.

If the principal fails to meet their obligations—such as by violating codes or causing damage—a claim can be filed against the bond. The surety may compensate the claimant, but the principal is legally obligated to reimburse the surety for any amounts paid.

Steps to Obtain the Bond

Securing a Berwyn City General Contractor $25,000 Bond involves these steps:

1. Verify Bond Requirements: Confirm the bond amount and conditions with Berwyn’s licensing office.

2. Choose a Surety Provider: Select a reputable bonding company experienced in contractor bonds.

3. Complete the Application: Provide details about your business, financial history, and bond requirements.

4. Pay the Premium: The premium is a percentage of the $25,000 bond amount, influenced by factors like your credit score.

5. Submit the Bond: Include the bond with your application for a general contractor license to finalize approval.

Cost of the Bond

The cost of the Berwyn City General Contractor Bond depends on:

• Credit Score: Higher credit scores typically result in lower premiums.

• Business Experience: Established contractors with a strong compliance history may qualify for better rates.

• Financial Stability: Demonstrating financial responsibility can reduce your bond costs.

Premiums for a $25,000 bond usually range from 1% to 5% of the bond amount, meaning you can expect to pay between $250 and $1,250 annually.

How to Avoid Bond-Related Issues

To maintain your bond and avoid claims:

1. Follow Local Ordinances: Familiarize yourself with Berwyn’s building codes and adhere to them strictly.

2. Protect Public Property: Take precautions to prevent damage to streets, sidewalks, and utilities during construction.

3. Complete Projects Responsibly: Ensure all work meets required standards and is completed on schedule.

4. Address Issues Promptly: Resolve disputes or concerns with clients or the city quickly to prevent escalation.

These practices help you maintain your reputation and avoid financial liabilities.