Contract BondsDiscover information about Contract Bonds here.
Use the tabs below to gain that information.
Contract bonds are required in construction projects that are paid with public funds in excess of $25,000 (amounts may vary by state). This group of bonds include several varieties. This is the type of surety bond that guarantees contracts that are entered into with a job owner are fulfilled. If the contracted party fails to fulfill its duties according to the bond's terms then the project developer or job owner can make a claim on the bond to recover financial losses.
Included in this group of bonds are some of the more common bonds. There are bid or bidders bonds, payment and performance bonds, labor and material bonds, maintenance bonds, supply bonds, etc. included in this group. These are the most well known types of contract bonds.
Bid Bond:These bonds are usually issued in an amount equal to 5% or 10% of the total bid price of the job (amounts vary). This bond guarantees that the contractor will enter into the contract at the stated price and cover all of the expenses associated according to the contract if selected the winner of the job. Some jobs require bid bond only. While other jobs require a bid bond and if the contractor is awarded the job, the job owner will expect a payment and performance bond, labor and material or other final bond for the project.
Final Bonds:As mentioned above some jobs require a final bond. These bonds are typically the entire amount of the contract. When these bonds are issued they are issued in one year increments. In many instances these bonds also include one year of maintenance. Some jobs take longer than a year to complete. Thus, the bond will renew. A critical factor in calculating any bid on any project will be to include the cost of bond needs.
Maintenance Bond:Some projects may require a maintenance bond. These bonds usually guarantees construction or creation (depending upon the project) for a specified period of time.
Supply Bonds:These bonds guarantee that the supplier will provide all the contractually obligated supplies and materials. In federal projects over $100,000 these bonds are required. The threshold can be much lower in many states.
Jane Bond Suretyworks with all different types of contractors, roofing, flooring, landscaping, painting, general contractors, lighting, interior, elevator, etc. You name it and we've found a market for them. And that's always our goal, to work with each and every client individually to find the perfect surety home for each client.
Contract BondDepending upon credit Contract bonds range from .5% to 10%. There are so many programs out there at fantastic rates. Of course, these bonds are written largely based on credit, experience, current jobs, prior claims experience, etc.
A $125 minimum bond fee applies to any bond issued in this category.