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| Surety Bonds |
| A Surety bond is simply a bond guaranteeing performance of a contract or obligation. The word Surety is normally used in insurance as a term that covers a variety of bonding services.
This is a three-party instrument intended to only assure and protect the “obligee” not the “principal” (applicant). The agreement binds the applicant to comply with the terms and conditions of a contract. If the applicant is unable to successfully perform the contract, the surety assumes the applicant’s responsibilities and ensures that the project is completed correctly. In other words a surety bond provides for monetary compensation should there be a failure to perform specified acts and this person or corporation supplying the bond acts as a co-signer or guarantor for a specific deposit, performance or contract.
All Surety Bonds can be approved by fax and mail as well as in person |
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| Performance / Construction Bonds |
| A performance bond guarantees faithful performance of the terms of a written contractor for furnishing supplies or for construction of all kinds. Performance bonds frequently incorporate payment bond (labor and materials) and maintenance bond liability. |
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| Bid Bonds |
Given by a bidder for a supply or construction contract to guarantee that the bidder, if awarded the contract within the time stipulated, will enter into the contract and furnish the prescribed performance bond. Default will ordinarily result in liability for the difference between the amount of the principal’s bid and the bid of the next low bidder who can qualify for the contact. In any event, however, the liability of the surety is limited to the bid bond penalty.
All Performance and Bid Bonds can be approved by fax and mail as well as in person
Note: Applications depend on the dollar amount of the bid. Please contact our office for more information. |
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| Why Bid, Performance & Payment Bonds are required for Public Construction Project. |
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