Bonding, Insurance and Lien Protection


Determining if a contractor should be bonded for the contract to construct your project can be a complicated and difficult decision.  For some projects, and contingent upon financing arrangements, the decision rests with parties other than ownership.

The Holder Group assists its clients in gathering financial and experiencial data for the contractor and will make recommendations based upon the stability of the contracting firm, their reputation, cost of the bond, etc.  In many instances, other more cost effective means of protecting the owner from the contractor’s financial failure can be implemented.


Contractor’s protective liability insurance is one of the most important types of insurances required for construction projects. Construction liability insurance protects you and your company from damages or injuries sustained by others on-site.  The Holder Group maintains a very stringent policy and control process designed to maintain adequate insurance coverage from all contractors present at its job sites.

Contract Requirements
- Prime, trade and subcontractors are notified during the bid process of the project’s insurance requirements
- Frequently, subcontractors will be permitted to carry less insurance than the prime contractors, based upon the risk factor of their particular trade to reduce unnecessary costs
- Contractors are not permitted to start work without proof of adequate insurance
- Payments are withheld to contractors whose insurance may have expired during the course of construction, until proof of renewal is provided.


Similarly, our clients are protected from placement of mechanic’s liens on their projects via our diligence in obtaining first, contingent lien waiver based on the assumption of payment and afterward, non-contingent waivers based upon actual payments made.

Additionally, we might recommend other protective measures such as three party checks, funds held in escrow, etc. to ensure the financial stability of the project.