Q: Kindly explain the real purposes of buying Workers’ Compensation Insurance in Malaysia we named it as Workmen Compensation Insurance.
A: For the best answer, you should contact the Malaysian Business Bureau. Due to the international requirements, each country will have specific needs for projects to analyze risks.
Q: I would like price it would cost on a bond for subcontractor doing finish carpentry division 6, for a scope of work exceeding $50,000.00 Also if I’m a subcontractor would I need to have any additional bonding?
A: In regards to the cost of performance and payment bonds, the surety rule of thumb would be no higher than 2.5% of the bond amount or contract amount, whichever is greater. The general contractor will dictate on whether you will need to post a subcontract performance and payment bond.
Q: We are a Service Disabled Veteran Owned Small Business speaking to larger contractors with Teaming Agreements. Do we need a bond, or do they bond? How do we get a bond and what is required?
A: In regards to whom will post the bond, this should be an agreement made between you and the contractor. The teaming agreement should identify whom is responsible.
If you are required, then you will need to contact a bonding agent and provide them with an underwriting package which includes but not limited to Contractors Questionnaire, business and personal financial statements, bank information line of credit, current work on hand schedule, etc.
