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6 Types of Contact Bonds
A bid bond is a contract bond that is used to bid on specific projects. If you win the bid for the project, you are agreeing to the terms which were laid out in the bid bond contract and sign all contracts in accordance to the specific project in which you won. The bid bond helps prevent contractors from submitting a low bid and changing the terms of the agreement after the bid is won. It guarantees that that the contractor submitting the bid agrees to enter into a legitimate and formal contract with the obligee and further provide a performance and payment bond before the start of the construction project.
A performance bond is issued, usually in accordance with a payment bond, before the start of a construction project. A performance bond guarantees the satisfaction of a completed project, and ensures that the contractor will complete all work on the project in accordance with the original contract. If the project is not completed during the set amount of time, or to the standards agreed upon in the contact, a claim against the performance bond can be filed.
A payment bond is issued before the start of a construction project alongside a performance bond to ensure that all subcontractors, laborers, and suppliers, and materials are paid for accordingly. If anyone on the project is not paid as stated in the contract, a claim can be made on the payment bond.
A supply bond is a type of contract bond that guarantees the obligee will provide all necessary materials to a contractor for a specific construction project. A supply bond is often required of contractors who furnish or provide various materials for a project but didn’t actually perform any work on that specific project.
A maintenance bond is acquired to protect the principal of a project from poor workmanship or low quality of work that will not last over time. This type of contract bond protects the owner of the project and ensures that the contractor will correct any work or replace damaged or defective materials up until a set period of time after project completion which is agreed upon before all contracts are signed.
A subdivision bond is also a type of contract bond that guarantees the contractor will make any required improvements to the property over a period of time once the project is complete. This agreement is necessary in order to even be awarded the project in the first place.
Why Surety Place?
The Surety Place StoryThe Surety Place, was founded in 2002 with a goal to bring innovation and a high level of service the industry had not yet seen. As an industry leader from the start, we are a people first surety bond partner who can help you with all types of contract bonds, offering access to agents and businesses to achieve the right solution at the right time.
Industry ExpertiseOur team has over 50 years of combined experience, with the industry knowledge and expertise to help with any bond! As one of the only true specialists in the industry, we supply access, partnerships, and specialty programs with numerous “A” rated sureties across the nation. We can service all your bonding needs with no appointments or contracts necessary.
A People First CompanyWe establish a relationship with every client in order to truly understand your personal business focus. Our industry knowledge coupled with our specialty programs, gives us the unique ability to write your bonds when no one else can, and because of our relationship with you we will stand behind you in support to achieve your business objectives.
We say yes!We also understand how difficult it can be when something that seems like such a small piece of the puzzle gets in the way of closing the deal or moving forward. No matter the size of the bond or how complicated, we say yes when no one else can. Poor credit, financial hardship, fast growth, your circumstances don't change the outcome, we have options for you!
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Your Contract Bond Issuer
Whether you need one, or you need all 6, The Surety Place is your solution for all types of contract bonds. We have the ability to issue bonds in all 50 states, and with our industry knowledge and specialty programs already set in place, we have the ability to write all types of contract bonds for you no matter how big or small. We pride ourselves on our white glove experience, making sure that our clients receive nothing but spectacular service from us. We understand the importance of trusting your Surety company, and we can promise that you will never be let down by what we provide you. In business, creating lasting working relationships is key for success; we want to be the surety company you choose for each and every bond you need. Contact us today with any questions or concerns and we will be happy to help!