Frequently Asked Questions (FAQ)
Bond Amount is $15,000.00. Standard Rate is 0.750% per year; with a minimum premium of $50.00.
Bond for Residential Roofing Contractors in Arkansas
Bond for Residential Roofing Contractors in Arkansas
The bond for residential roofing contractors in Arkansas (Arkansas-Residential Roofing Registrant Surety Bond) is a form of financial guarantee required for contractors engaged in the installation and repair of residential roofs in Arkansas. This bond ensures protection for consumers against fraud, contractual breaches, and other issues related to the work of roofing contractors.
What is the Residential Roofing Registrant Surety Business?
The residential roofing surety business provides financial guarantees for contractors who install and repair roofs for residential buildings. Such surety bonds protect clients and regulatory authorities in case the contractor fails to meet their obligations or breaches the contract. These guarantees ensure that clients can receive compensation for poorly executed work or other problems with the contractor.
Example with Boris
Boris is a contractor specializing in the installation and repair of residential roofs. To work legally and protect his clients, Boris secured a Residential Roofing Registrant Surety Bond. Recently, he received a project to install a new roof for a private home. Thanks to his surety bond, the client was confident that the work would be completed on time and to a high standard, and in the event of any problems, Boris or his insurance company would cover any potential damages. This increased trust in Boris and attracted new clients.
How much does a roofing contractor bond in Arkansas cost?
The bond for roofing contractors in Arkansas (Arkansas-Residential Roofing Registrant Surety Bond) is set at $15,000.00. The standard rate is 0.750% per year with a minimum premium of $50.00. A 25% discount is available for multi-year contracts. A signed application is required, and approval will be provided based on credit qualifications (FICO).
How does a roofing contractor bond work?
The bond for roofing contractors in Arkansas (Arkansas-Residential Roofing Registrant Surety Bond) ensures that contractors meet their obligations to clients and government authorities. This bond protects consumers from unreliable work and helps resolve claims in case of breach of contract terms.
Example: Boris’ Violation
Boris is a roofing contractor in Arkansas who obtained a bond to operate his business. However, Boris failed to meet his contractual obligations, leading to poor roof installation on one of his projects. Boris’ client filed a claim against his bond, and eventually, Boris lost his bond. This case highlights the importance of adhering to standards and contractual obligations in roofing work.
Key points about the bond for roofing contractors in Arkansas
- License requirement: In Arkansas, roofing contractors are required to have a bond as part of the licensing process for operating their business.
- Consumer protection: The bond protects clients from losses due to poor-quality work by contractors or contractual breaches.
- Bond amount: The bond amount is $15,000.00, providing consumer protection up to this amount in case of claims against the contractor.
- Contractor obligations: Contractors must comply with all applicable laws and regulations, including building codes and standards. Breaching these rules may lead to claims against the bond.
Agents can issue a bond for roofing contractors in Arkansas through the online portal.
Other bonds you may be interested in
You can explore other bonds on our website, where a wide variety of business bonds across the U.S. are available.
Frequently Asked Questions
How much does a roofing contractor bond in Arkansas cost?
The bond for roofing contractors in Arkansas costs $15,000.00. The standard premium for the bond is 0.750% per year with a minimum premium of $50.00.
What does this bond cover?
The bond protects clients from losses related to poor or unreliable roofing work by contractors in residential homes, as well as from contractor breaches of contract obligations.
How to obtain a roofing contractor bond in Arkansas?
A signed application and credit approval are required to obtain the bond. You can apply for the bond through the online portal.
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Execution Notes
Bond must have an original signed Attorney in Fact signature.
Filing Method
Executed bond must be filed with the obligee by agent/principal.
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