Edge Development, a General Contractor based in Temecula CA, shuts its doors after 23 years in business. The company had several public works projects underway. Thankfully, the law requires contractors on public works projects to provide performance and payment surety bonds. As a result, the surety has already stepped in, all the sub contractors and suppliers will be paid and the jobs completed at no addtional cost to the tax payers.
Many contractors do not like the surety bond requirements. Some feel that the surety requirement prevents them from participating in public works projects. Fact is, that is absolutely true, the surety bond requirement does prevent contractors that are not qualified, either financially or lack of experience, to participate in public works projects. For a very minimal fee, the surety company prequalifies contractors and financially backs that prequalification process, saving the tax payers money time and time again.