Bond issues

Discussion in 'General Discussions' started by Guest, Jun 26, 2008.

  1. Guest

    Guest Guest

    North Dakota Regulations state that geothermal installers must obtain a surety or cash bond before being allowed to drill wells for a geoexchange system. Yet many installers, through no fault of their own, are finding it extremely difficult to get a surety bond. Many insurance companies just don't seem to be interested or get all jittery at the mention of the word "geothermal". Has anyone else out there encountered this problem, and does anyone know what, exactly, the problem is and what can be done about it? :confused:
     
  2. Dale

    Dale New Member

    Bonding provides the owner with assurance that the job will be completed. If the contractor fails for any reason, the owner collects on the bond and uses the funds to find another contractor to finish the job. As a result, sureties are concerned about a company's ability to complete a job because they don't want to pay a claim. I suspect it is more likely the problem in North Dakota has more to do with the company's experience installing geothermal than the geothermal scope of the job. At it's core, geothermal is merely HVAC and drilling, neither of which are unusual contractor activities.
     

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