Contracts are generally done through a solicitation procedure where companies and individuals can bid on services or goods and construction projects. 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.
Colorado 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 CDOT contract) may be required.
There are several categories that fall under the umbrella of contract bonds which include:
Colorado Supply Bond: Guarantees that the company will supply the goods with a specific timeline as outlined in the contract.
Colorado 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.
Colorado Performance Bond: Guarantees the contractor will perform the contract, including finishing the project on time, staying within budget and other terms within the contract.
Colorado Proposal Guarantee Bond: Is another term for Bid Bond and includes the same aspects.
Colorado Payment Bond: Guarantees that subcontractors, suppliers and laborers are paid.
Colorado Maintenance Bond: Guarantees materials workmanship for a certain period of time after a project is completed.
The Small Business Administration has a Bond Guarantee Program to help small contractors bid on projects.
The premium, which is the cost that you pay for a Colorado Contract Bond, will vary and depend on work on hand, business and personal financial statements, scope of work, the amount of the project and other conditions.
Contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday