Step #4: Purchase a surety bond in the amount of $10,000
What is a Water Well Construction Surety Bond?
A water well bond is a sort of guarantee to your clients that you will adhere to the rules and regulations of the Water Resources Department. If, within three years of construction, it becomes apparent that you have not followed these rules your client is able to make a claim on your bond. The surety company you purchased your bond from would then investigate the claim and if the company found it valid would pay the client to make restitution. You would then be responsible for repaying the surety company.
How Much Does a Surety Bond Cost?
The bond amount for the Oregon Water Well Construction Bond is $10,000
This is not the amount you will pay for your bond though! Bond rates are calculated based on a percentage of the total bond amount. Generally, the rate is between 1-15%. Most individuals with a good credit score (over 700) can get their mortgage bond at a rate of 1% or less. If your credit isn’t as good, you’ll have to pay a higher rate.
Are you interested in getting a Water Well Bond? Surety Solutions offers free quotes from several carriers so that you can find the best price. Just click below to get your quote.