Posts Tagged ‘termite bond’

Importance of Bonding

Monday, June 29th, 2009

When you get ready to hire a company to do a job for you, it is likely that you will hear (or read) the phrase, “We are licensed and bonded”. But what exactly does that mean? Does it really matter if a company is licensed and bonded? As a home or business owner, hiring a workman or service company is part of life. Knowing the importance of bonding and licensing can make the difference between a job you are pleased with one in which you are burned.

Bonding and Licensing Q&A:

  1. What is bonding? Simply put, bonding is “A third party obligation promising to pay if a vendor does not fulfill its valid obligation under contract.”
  2. Are there different types of bonds? Yes. There are 5 types of bonds: Performance Bonds which guarantees that work will be accomplished as stated in the contract; A Bid Bond which promises you (the company) will perform the work if you win the work contract; a Indemnity Bond which guarantees to reimburse loss incurred for failure to achieve the work or if payment to other vendors is not done; a Licensed Bond which is required in some states for certain business; and, a Payment Bond which promises you will pay all subcontractors and material providers for items used on the job.
  3. Is a bond the same as insurance? No. A bond only means that a job will be completed properly and as the contract stated.
  4. What about licensing? Depending on the type of job, licensing is not necessarily needed. However, most states require a general business license. Companies with a license are often more reputable and are a bit easier to research for customer reviews.
  5. How can I find out if a company really is bonded and licensed? Contact the Register of Contractors or the Contractor’s State Licensing Board.
  6. Why is licensing important? Licensing allows you to assure yourself that you are getting qualified workers. Typically, getting a license requires fingerprinting and a background check. Also, a licensed contractor often has a minimum of 4 years experience and must pass at least 2 test that demonstrate knowledge of their field.
  7. With any job, you get what you pay for. By hiring a licensed and bonded contractor, you are protecting yourself and taking the steps necessary to see that you have a job with which you are pleased.

How Important is a Termite Bond?

Friday, June 26th, 2009

Current homeowners and people thinking of buying a home need to know the dangers of termites. These tiny insects are the most destructive in all of North America, causing serious damage to homes inside and outside. Termites live underground where they build tunnels. Within the tunnels are various rooms used for storing the food they eat – wood. In the wild, termites scavenge for dead trees but when termites build tunnels around a home, they find food in the form of wood decking, foundation, floor and ceiling joists, and so on.

The problem is that if an infestation of termites is not controlled quickly, they multiply and soon, thousands and thousands of dollars of damage has been done, often creating an unsafe environment for the homeowner. For homebuyers, regardless of the property’s age, it is important to purchase a termite bond after treatment. During the time the home inspection would be performed, a professional should be hired to complete a termite inspection. This inspection is so vital that buyers should never sign a contract for the purchase of the home until this is completed.

During the inspection, the professional would look at areas where termites are commonly found. The exception is during the month of April, a time when termites swarm and remain inside wood, devouring everything they can. The inspection involves looking for tunnels or any other suspicious area. Once the inspection is completed, the professional would provide the homeowner with a report on his or her findings, outlining the location of damage and the degree of damage. The inspector would also recommend that the homeowner have the termite problem treated immediately. For the buyer, the cost of this treatment usually falls back on the seller.

After treatment, the pest control company would offer the new homeowner what is known as a termite bond. Of course, existing homeowners that are not selling should also consider having an inspection done, at which time they too would have the option of a termite bond. In both cases, the termite bond is a type of contract whereby the home would be inspected once a year to identify any new termite activity. A termite bond does require an annual fee but considering the depth of damage these tiny insects do, it is a great investment.

Typically, a termite bond guarantees that if new termite activity were found upon inspection, the home would be treated again at no charge. Some pest control companies also put in the contract that any damage done by the new termite activity would be covered at their expense. For a homeowner to pay for such damages, the cost would be significant so the small fee of the termite bond makes it a wise decision.

The most important thing is that once the homeowner agrees to a termite bond, this contract should not be allowed to expire. Even if the homeowner expects to remain in the home for 20 years, the annual fee ensures protection from damaging termites. In summary, the termite bond is an agreement between homeowner and pest control company that any future problems with termites after the home was treated would be the responsibility of the company and not the homeowner.

Find termite control companies in Georgia where you can get a termite bond for Atlanta so that you can rest soundly knowing that your home investment is protected.