Heavy civil engineering contractors and subcontractors are typically involved with projects for federal or state governments, cities or municipalities. Projects often involve building, maintaining or repairing infrastructure such as dams, bridges, railway tunnels, elevated highways, and even build and decommission nuclear power plants.
A part of the bidding process involves the contractor obtaining a surety bond as a guarantee that the project will be completed as stated in the contract.
In the case of heavy construction projects, the obligee requiring a surety bond is typically the federal or a state government, a city, or a municipality. The bond amount will be set by the obligee.
A payment and performance surety bond ensures that the project will be completed on time, within budget, and with the workmanship expected. It also provides a guarantee that laborers and suppliers are paid.
A surety company evaluates the risk of the contractor and determines their bonding capacity. Once a surety company backs up a contractor, the obligee knows that they are protected.
Should the contractor fail to honor the terms of the contract, the obligee can make a claim on the bond. The contractor (named as the principal on the bond) is responsible for repayment of the claimed amount that the surety paid out.
The premium you pay for a heavy civil engineering construction surety bond depends on the bond amount, plus personal and business financials. Contact SuretyGroup.com's surety bond specialists to get a quote that fits your specific project.
SuretyGroup.com writes free bid bonds for qualifying contractors.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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