When an electrical contractor is "bonded," this means that he or she has purchased an assurance document that their work will be completed on time and professionally. This written "bond" acts like an insurance policy and then assures that every job that the electrician starts will be finished to the satisfaction of the client. If for a good reason the customer isn't ultimately satisfied with the electrical work performed, then a "claim" is made with the bonding company, and the customer will be reimbursed. Usually, however there is an investigation into the electrical work performed to verify that the claim is above board.
There are several types of "bonds" that an electrician may purchase:
1 - THE BID BOND: A Bid Bond is issued as a portion of the bidding process by the electrical contractor to the property owner. This type of bond assures and guarantees that should the bidder be successful, the licensed electrician will execute the contract and provide the required surety bonds. "Surety" in this case refers to the electrician doing the work.
2 - THE PERFORMANCE BOND: A performance bond is issued by an insurance company or a bank and guarantees satisfactory completion of the project by the electrical contractor.
3 - PAYMENT BOND - A payment bond is what can guarantee the owner that the licensed electrician will be paid any money that they are due from a "principal." So, if the electrical contractor is hired by someone else, and then they do work on your property, the owner (you) can benefit from a payment bond because the electrician and suppliers are guaranteed payment and will continue performance.
To sum up, if the electrician is "bonded," then you can be assured that the job will be done professionally and finished to your satisfaction. The electrical contractors reputation, and license, are on the line, they want to do a good job, and make sure you are happy.
One thing that most people don't know is that these bonding companies (usually insurance companies or banks) charge a significant fee to the licensed electrician. Some of the smaller electricians will likely try to charge this back to the customer, whether they know it or not.
The bond also guarantees the work of the licensed electrician for as long as that person is living. So, when hiring a bonded electrician, make sure you get the name of the bonding company and details in case you need it for future reference or claims.
Also, the bonding company keeps a good record of service for the electrical contractors contracted with them. It is always a good idea to check references through the bonding company, and see if there have been any issues with the contractor.
The key thing to remember when trying to chose between a bonded or not bonded electrician is this: A non bonded licensed electrician may always be able to do the same work as a bonded one. The bond guarantees the work under most circumstances, because it's an outside party providing the coverage. Ultimately it is up to you to determine whether to chose a bonded or not bonded electrician. The one thing that is recommended for certain, is to make sure the electrician you hire is licensed in that particular state, and knows all the electrical codes for the area. But that is another article!
This article was written by Don Carter and a licensed
Miami Electrician and
Hollywood Electrician at Vozzcom Electric.
