Has anyone used construction bonds on single family flip?

[Benedict A Hubbert]

I ran into a situation on a flip where the GC was not insured or bonded. He hired a bunch of sub contractors who he didn’t pay even though I paid him. This was in Texas so the sub contractor put a lien on the property. The contractor also walked off the project having been paid 2/3 of the rehab cost with 20% of work being done. My question is has anyone used construction bonds on single family flip? From my understanding the cost is 2-3%. There are 3 types of bonds that I thought might have been useful in my situation

1) Bid bond

2) performance bond

3) payment bond

Has anyone used any of these? Have they been useful? Appreciation any insight.

[Bruce Woodruff]

Originally posted by @Benedict A Hubbert:

 I guess my question is there any protection to make sure GC pays subs?

And there is your problem. You did not hire a GC. You did not hire a Contractor at all..... You hired an unlicensed scab..... probably for $$. You have no recourse and it's your fault. Do it differently next time.