In landscape construction it's becoming more common. It's mostly requested by out of state general contractors who come to Michigan to build a building for a long term customer. While I'm not a fan of this. It is a easy way for a general to determin if the contractor is a real player in his field and also if the contract he wants to award him is over there heads
Seems relatively standard with larger jobs; It is insurance that you deliver. I doubt it is a regulation of your profit or determination of your hardship.
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