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What Is a Contract Bond for Construction Projects in Arkansas?

An Arkansas Contractor shakes hands with a client

Contracts are generally done through a solicitation procedure where companies and individuals can bid on services, construction projects, or goods. The process could include completion of a bid bond form, application to a vendor system, and other requirements. Below are links that provide more details to contract processes.

Arkansas Contract Bonds are often required by the federal government, local municipalities, counties, universities or private entities. The process generally begins with a bidding process and if awarded the contract, a contract bond or payment and/or performance bond (example an AHTD contract) may be required.

There are several categories that fall under the umbrella of contract bonds which include:

Arkansas Supply Bond: Guarantees that the company will supply the goods with a specific timeline as outlined in the contract.

Arkansas Bid Bond: Ensures that the surety prequalifies the contractor bidding on the project. The bond confirms that if the contractor is the low bidder, the surety will issue the performance and payment bonds.

Arkansas Performance Bond: Guarantees the contractor will perform the contract, including finishing the project on time, staying within budget and other terms within the contract.

Arkansas Proposal Guarantee Bond: Is another term for Bid Bond and includes the same aspects.

Arkansas Payment Bond: Guarantees that subcontractors, suppliers and laborers are paid.

Arkansas Maintenance Bond: Guarantees materials workmanship for a certain period of time after a project is completed.

How Much Will This Bond Cost?

The premium that you pay for an Arkansas Contract Bond will vary in cost and is dependent on business and personal financials, scope of work, the amount of the project and other conditions.

Did You Know?

The Small Business Administration has a Bond Guarantee Program to help small contractors bid on projects

Related Links:

Bond Guarantee Program
Arkansas Department of Finance and Administration - State Contracts
Arkansas Department of Finance and Administration - Procurement
Arkansas Division of Building Authority - Bid Announcements

Contact our Surety Bond Specialists today at:

Phone: 1‑844‑432‑6637
Fax:     404-351-3237
Hours: 8:00-5:00 CST, Monday through Friday

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