I was talking to a friend today, and he said that the thing that worries him the most when thinking about the next few months, is what is going to happen to bond rates.
He is afraid that with all these guys just barely hanging on, and lowballing each other to ge t bids, that the bonding companies may end up having to finish off a lot of jobs. And, that if they do they will raise bond rates across the board to cover the losses.
Any Thoughts?
Replies
My word is my bond...James bond.
Short term, it's a bad deal for the bonding companies. Then, they raise the rate, and transfer the problem to contractors, and consumers.
Short term, the bonding companies will have to hire another contractor to finish the job. Good news for the 2nd contractor. Hopefully a few of these will carry him thru until business picks up. Only the strong survive.
Long term, the weaker contractors have been eaten up by the stronger contractors, and capitalism lives another day. It's great, if you aren't near the bottom of the food chain.
Maybe it's good then, too. It might look bad at the time, but many of us are better off working for someone else.