We believe education is one of the most important parts towards building a relationship with our clients. We are frequent speakers at trade shows and also author articles on surety bonding and the bonding prequalification process. Below, you can review several articles and videos on the different types of bonds and how to obtain a bid bond, performance bond and payment bond!
A bid bond is issued during the bidding process by the contractor to the project owner to guarantee that if they win the bid and undertake the contract then they will post a payment and performance bond or sometimes called a contract bond.
A payment bond is a surety bond posted by a contractor to guarantee that its subcontractors and material suppliers on the project will be paid. They are required in contracts over $35,000 with the Federal Government and must be 100% of the contract value. They are often required in conjunction with performance bonds.
A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. The term is also used to denote a collateral deposit of good faith money, intended to secure a futures contract, commonly known as margin.
License & Permit Bonds
There are many different License & Permit Bonds. Some examples include DPOR Bond, MD Home improvement bond, plumbing and gas fitting bond, VDOT Surety Bond LUP-SB to name a few.