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Fee for TCO?

jpranch

jpranch

Platinum Member
Joined
Oct 17, 2009
Messages
1,976
Location
Gillette Wyoming
How many of you charge for a TCO or hold bond monies to ensure project completion? If you do please provide a link. We are thinking of doing something along those lines.
 
We do not do TCO. Do to our climate we do allow bonds or letter of credit for non-life safety issues such as paving, landscaping, final grade, sidewalks. Bonds are 150% of the engineers estimated cost or executed contract. We do not bond for items directly related to the structure.
 
Perhaps the question should have been do you require a performance bond or other monies to ensure completion? The problem we are having is getting non-life safety items completed when we issue a TCO.
 
Ditto to mtlc........no TCO's, it's either ready to occupy safely, or not. We do allow bonding out on the same items mtlc mentions.
 
Don't know the EXACT particulars, but as I said, they can (and do, pretty much the same conditions as you have in WY) bond out of it. It must work, in the 12+ years I've been here, I can't remember a project ever NOT getting completed. I can find out more for you tomorrow if you'd like, and PM you with details.
 
The bond has a completion date. The key is someone needs to track the bond or letter of credit and if the work is complete then they release the bond or LOC if you are within 30 days of the completion date they need to notify the bonding company or bank the city is going to call in the bond/LOC. They will put pressure on the contractor/owner to complete the items listed in the bond. If not done collect the money and pay someone to do it.

It is not unusuall to give a completion date of 6 to 12 months out.
 
There are a lot of good reasons to issue a TCO ... weather is one reason... a grocery store needing to stock in advance of the actual opening is another.

Get a bond.. if the jurisdication has to finish the work, make sure the bond is sufficient to cover it.
 
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