Who is most commonly in position to require a bond to protect against non-performance and liens on a home improvement job?

Who is most commonly in position to require a bond to protect against non-performance and liens on a home improvement job?

• A. Homeowner
• B. Insurance company
• C. City inspector
• D. Bank

Answer: (A)

The person paying for and overseeing the project—the homeowner—typically requires a bond. A performance bond protects the owner if the contractor doesn’t complete the work, while a payment bond ensures subcontractors and suppliers are paid, preventing liens from arising on the home. Since the owner bears the risk and the financial impact if the job isn’t finished or if liens are filed, they’re the ones who commonly set this requirement in the contract. City inspectors enforce codes and don’t provide bonds, and lenders or insurers aren’t the usual party driving this protection in a standard home improvement job (though a bank may ask for guarantees if financing is involved). So the homeowner is in the best position to require a bond.

The person paying for and overseeing the project—the homeowner—typically requires a bond. A performance bond protects the owner if the contractor doesn’t complete the work, while a payment bond ensures subcontractors and suppliers are paid, preventing liens from arising on the home. Since the owner bears the risk and the financial impact if the job isn’t finished or if liens are filed, they’re the ones who commonly set this requirement in the contract. City inspectors enforce codes and don’t provide bonds, and lenders or insurers aren’t the usual party driving this protection in a standard home improvement job (though a bank may ask for guarantees if financing is involved). So the homeowner is in the best position to require a bond.