Legal Question in Construction Law in California
''Bond around'' definition?
General contractor offering to bond around the sub contractor. Job is complete but sub has not been paid
1 Answer from Attorneys
Re: ''Bond around'' definition?
The contractor is likely referring to a lien release bond. This is a bond where a surety steps into the place of the landowner in the event a particular subcontractor attempts to file a lien against the property. The surety pays the sub and then looks to the general to reimburse them. When you negotiate with the general, make sure he is paying for the bond and not you. Additionally, make sure you have an indemnity provision in your contract where is anything goes awry the general will reimburse you your damages.
If the lien release bond is done right, you should be able to use this general with no problem.
Best of Luck!
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