Contracts are generally done through a solicitation procedure where companies and individuals can bid on services, construction project 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.
Supply Bond: Guarantees that the company will supply the goods with a specific timeline as outlined in the contract.
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.
Performance Bond: Guarantees the contractor will perform the contract, including finishing the project on time, staying within budget and other terms within the contract.
Proposal Guarantee Bond: Another term for Bid Bond and includes the same aspects.
Payment Bond: Guarantees that subcontractors, suppliers and laborers are paid.
Maintenance Bond: Guarantees materials workmanship for a certain period of time after a project is completed.
The premium that you pay for an Idaho contract bond varies and is dependent on business and personal financials, scope of work, the amount of the project and other conditions.
The Small Business Administration has a Bond Guarantee Program to help small contractors bid on projects