ᐅ How can I protect myself against the bankruptcy of a construction company?

Created on: 28 Apr 2020 16:15
H
Hauherr2020
Hello! Our preferred home builder offers a completion guarantee in the form of an insurance surety worth 5% of the net construction contract amount.

A completion guarantee is great. But why only 5%? How is it handled in your cases? How can I best protect myself against the company going bankrupt?

Background: I have looked into credit reports. From what I read, they are not very conclusive. A completion guarantee seems to be the best option. But is it available for the entire project, or are 5% typical?

Thanks in advance!
K
KundF_Hof
15 May 2020 12:01
haydee schrieb:

Check the Homeowners Association. I think they have something on their website.

I haven’t found anything in the public area. We are not currently members. Could you possibly post it here?
H
haydee
15 May 2020 12:07
I am also not a member. I am quite sure it was found there back in 2017. I no longer have it on my computer.