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PRO
West Village GC

Great article, do you mind if I re-post on our page and give you credit and a link?

   
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Chiyun Tien
Is there a discussion on this forum about buying a bond for a home remodel? Our architect recommends it but the contractor we liked who won the bid claims he’s never been asked over his 15 years of business. The contractor said it would cost 1.5% on the $500,000. job for paper work which he said is $10,000. (but we calculate $7,500.) Both architect and contractors have good reputations. What are we missing here?!
   
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PRO
Ventana Construction LLC

Performance bonds are usually not purchased or required for residential construction. They are common practice in commercial construction. They are based on the value of the project, and can be taken out by the contractor, but are an additional expense. I think that if you are asking the contractor to incur an expense they usually don't, it is reasonable for them to ask to be compensated/reimbursed.

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