SURETY BONDS

The use of bonding has grown in popularity over the last few years. Having affordable, and timely bonding services can make the difference in getting a contract or job. In this section, we explain the concept of surety and list some of the more popular bonds.

A surety bond is a contract guaranteeing the performance of a specific obligation. Simply put, it is a three-party agreement under which one party, the surety company, answers to a second party, the owner, creditor or “obligee,” for a third party’s debts, default or non-performance. Contractors are often required to purchase surety bonds if they are working on public projects. The surety company becomes responsible for carrying out the work or paying for the loss up to the bond “penalty” if the contractor fails to perform. Below is a list of common bonds offered:

·         License Bonds
·         Permit Bonds
·         Bid Bonds
·         Maintenance Bonds
·         Payment Bonds
·         Performance Bonds
·         Site Improvement Bonds
·         Subdivision Bonds
·         Supply Bonds