I would like some enlightenment on construction bond and its ramifications. I tried googling it but it is not very clear who is responsible for what.
I am currently building a business on leased premises and have hired a contractor for the buildout. The landlord wants a construction bond from the contractor. The contractor tells me I have to pay for the bond. Is that correct?
Googling this does not help me a whole lot in understanding this: It seems to say that the contractor has a duty to me to complete construction and so they need a bond to guarantee that. I am the obligee and they are the principal, right? So why would I pay for their bond? Will this amount be in addition to the construction bid that they submitted to me at the start of the project?
Do you think I should consult a surety bond attorney for this issue?
Thanks for any insights.