A construction bond is a 3 party agreement in which the bonding company (surety) guarantees that a contractor will perform obligations according to the established plans and specifications of a contract.
Are you an emerging contractor looking for your first performance bond facility? Have you experienced difficulty or frustration qualifying for a traditional surety or have been deterred due to the high complexity or the vast amount of paperwork?
Construction Bonding FAQ – Emerging Contractors
Q- What type of Contractor is accepted into the program?
Q- What types of bonded contracts are unwritten in the program?
Q- What about Asbestos, Environmental, recycling, waste removal and High-tech?
Q- What if I require a larger construction bond than $300,000
Q- What is the cost for a bid bond?
Q- What is the cost for the surety facility?
Q- What is the cost of a construction bonds and labour material bond?
Q- Does the Emerging Contractors Construction Bond Program cover the warranty period?
Q- What if I participate in specialized field and do jobs across the country?
Q- What if my projects are mainly subcontracted?
What Are Construction Bonds?
Construction bonds are a legal agreement in which the surety guarantees that a contractor or principal will perform the obligations according to the established plans and specifications of the contract. Construction bonds provide security to the obligee that, should the contractor fail to perform their obligation under the contract, the surety will assume the responsibilities of the contract as per the terms of the contract and subject to the conditions on the bond. The surety may:
When a contractor is the successful bidder on a tender, a construction bond is often required to be submitted along with various documents prior to starting work. Construction bonds are most often requested on public projects but can be requested by private owners as well. Construction bonds are available for general contractors, sub-contractors along with many niche industries including suppliers, manufactures and engineering companies.
Qualifying For Construction Bonds
To determine whether or not a contractor qualifies for construction bonds, the surety will look to the 3 “C´s” of credit.
Ai Surety Bonding has programs available for construction bonds of all sizes. Whether you are a large experienced contractor or an emerging contractor, we can secure the bonding facility that is right for you.
Applying For Performance Bonds? Have Questions?
Contact our surety experts at 1-877-213-4545 or firstname.lastname@example.org
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