Proposed Bill Increases Surety Bond Amounts
The paltry $12,000 bond required under the current Contractor Registration Act would be increased to $75,000 for contractors with gross revenue of more than $7.5 million and to $50,000 for contractors with gross revenue of $2 million or more under this new proposed Senate bill.
Many obligees are revising their bond requirements, as most of them are dated and are too low. When claims begin the arise, the bond is used up quickly, sometimes within one claim. This leaves other valid claims left unpaid.
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