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Contractors Bond/ Performance Bond

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cinnacracker

Junior Member
Cleveland, Ohio

Hi. We puchased a new townhome in 11-05. It was mostly built when we found it, but we were able to choose finishing options etc. The builder ran out of money and basically abandoned the house before it was fully finished. Now we are left with over 20 building code violations and no certificate of occupancy. We have successfully obtained a criminal conviction of the builder, but since he has no money to pay and we dont want him to do the work anymore, we are pursuing his performance bond.

Here's the question. There are 2 bonds, the first was in effect when he got a permit to build the place, but expired before we bought. The 2nd bond (different company) was in effect when we found and bought, but was not in place when the original permit was taken. Which bond are we entitled to?

Also, either bond is not enough to cover the work. Are we entitiled to his contractors insurace?

Thanks.What is the name of your state (only U.S. law)?
 


HomeGuru

Senior Member
Cleveland, Ohio

Hi. We puchased a new townhome in 11-05. It was mostly built when we found it, but we were able to choose finishing options etc. The builder ran out of money and basically abandoned the house before it was fully finished. Now we are left with over 20 building code violations and no certificate of occupancy. We have successfully obtained a criminal conviction of the builder, but since he has no money to pay and we dont want him to do the work anymore, we are pursuing his performance bond.

Here's the question. There are 2 bonds, the first was in effect when he got a permit to build the place, but expired before we bought. The 2nd bond (different company) was in effect when we found and bought, but was not in place when the original permit was taken. Which bond are we entitled to?

Also, either bond is not enough to cover the work. Are we entitiled to his contractors insurace?

Thanks.What is the name of your state (only U.S. law)?
**A: don't know for sure since we have no details on the type of bond etc. You are 3 years overdue in hiring an attorney.
 

cinnacracker

Junior Member
We have been working with 2 attorneys for 2.5 years. That's how we obtained a criminal conviction against our builder and he owes us over $100,000 in restitution as a consequence. Regardless, all we hope to see is the bond.

Our attorneys dont seem to know the answer to the question, and the city official which is helping us make a claim on the bond seems unsure himself. All I can say is that it says Contractors bond on it and it is being refered to as Performance bond. Im trying to understand if the 2nd bonding company assumes all the liability of the first or if they are only responsible for new work started within the time their bond is in effect.
 

HomeGuru

Senior Member
We have been working with 2 attorneys for 2.5 years. That's how we obtained a criminal conviction against our builder and he owes us over $100,000 in restitution as a consequence. Regardless, all we hope to see is the bond.

Our attorneys dont seem to know the answer to the question, and the city official which is helping us make a claim on the bond seems unsure himself. All I can say is that it says Contractors bond on it and it is being refered to as Performance bond. Im trying to understand if the 2nd bonding company assumes all the liability of the first or if they are only responsible for new work started within the time their bond is in effect.
**A: are your 2 attorney's experienced in construction law?
 

cinnacracker

Junior Member
Apparently not enough. We're considering hiring a different more specialized attorney, but are not sure we want to get started with someone new. I guess that's why Im looking for some information on this forum. We didnt know this was all going to get this involved when we started, so it seemed the current attorney was sufficient. He did get us this far, though.
 

HomeGuru

Senior Member
Apparently not enough. We're considering hiring a different more specialized attorney, but are not sure we want to get started with someone new. I guess that's why Im looking for some information on this forum. We didnt know this was all going to get this involved when we started, so it seemed the current attorney was sufficient. He did get us this far, though.
**A: it should not have taken 2.5 year with 2 attorneys. Very slow.
 

cinnacracker

Junior Member
Its not their fault. Its just the time it takes for The city of cleveland housing court to work through the process. This is actually a criminal case, not civil. First they give benefit of the doubt, then they try to motivate, then they come down hard. It is a painful process. Ive heard Cleveland is one of the best around though. :eek:

Conviction though is the easy part. Collecting blood from a turnip is the hard part. That's why Im trying to figure out which bond we are entitled to. At least the bonding company has money. You'd think these answers would be straight forward, but it seems like this is new to everyone involved!
 

HomeGuru

Senior Member
Its not their fault. Its just the time it takes for The city of cleveland housing court to work through the process. This is actually a criminal case, not civil. First they give benefit of the doubt, then they try to motivate, then they come down hard. It is a painful process. Ive heard Cleveland is one of the best around though. :eek:

Conviction though is the easy part. Collecting blood from a turnip is the hard part. That's why Im trying to figure out which bond we are entitled to. At least the bonding company has money. You'd think these answers would be straight forward, but it seems like this is new to everyone involved!
**A: ok, ok then good luck.
 

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