Bid/Performance Bond

8. The contractor’s liabilities should be listed seperately.
(a) It is important to realize that every contractor doing some
work has liabilities. Thus, if he says he owes no money, the
underwriter is skeptical.
(b) Material houses listed as creditors should be interview, in order to learn if the contractor owes what he says he owes. To see if he pays on time, earnes discount, pays satisfactorily, or pays slowly
Several materal houses should be interviewed, because sometimes people are anxious for a contractor to get a job, so he can liquidate an account that is worrying the material house.