A Hailstorm of Surety Bonds To Protect El Paso, Texas

Good quality work can be hard to find in these modern days; it seems like businesses often cut corners to save money, out of convenience, or just out of pure laziness. The City of El Paso, Texas has had one too many run-ins with unreliable construction contractors and is making changes to put a stop to it.

A gigantic hailstorm in 2009 left thousands of citizens with damage to their houses. Many out-of-town roofers migrated to El Paso to get a piece of the plentiful repair work, but soon after city officials noticed a spike in complaints about faulty workmanship. The contractor license bond amount required of contractors at the time was only $10,000 which usually was not enough to cover the cost of damages from the storm.

To combat the problem of shoddy contractors, the city of El Paso boosted the surety bond amount required of construction companies seeking to build houses or commercial buildings. The required bond was raised from $10,000 to $50,000 for contractors which they need in order to be eligible for city permits on many residential and commercial projects. The increased bond amount is better suited to deal with more serious damage such as the damage from the hailstorm.

It seems like an obvious choice to raise the bond requirement for contractors after thousands of roofs started to fall apart. While the increased bond amount does better protect the citizens of El Paso, it will prevent many contractors from obtaining work; about 15% of the 2,500 contractors in the city have been able to obtain the raised bond amount in order to stay legal with the state. The main roadblock for these contractors is poor credit which makes it harder to get a bond since the eligibility and price is based mostly off of credit. Unfortunately for these contractors, the citizens come first especially since the surety bond increase was a result of the questionable work performed by contractors in the first place; so the city chose to boost the protection.

There is hope for the contractors having trouble acquiring surety bonds. JW Surety Bonds is the exclusive provider of several bond programs for people with credit issues.  The rates are a fraction of other hard to place bond programs and approvals are done instantaneously online.  Applying online for a bond has never been easier.

After the storm passed and people were left with leaking homes, the City of El Paso did what it needed to do to benefit their people. Although many contractors are having trouble obtaining surety bonds, there is always an alternative company to help with hard to place bonds; if you happen to fall in to this group feel free to give JW Surety Bonds a call at (888) 592-6631 and we will be happy to set you up with what you need to run a licensed business. 

Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.

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