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What Type of Surety Bond Might Be Needed for an Illinois Contract?

An Illinois 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.

Surety Bonds for Contracts:

Illinois 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 (such as an IDot contract) may be required. There are several categories that fall under the umbrella of contract bonds which include:

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

Illinois 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.

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

Illinois Proposal Guarantee Bond: Another term for Bid Bond and includes the same aspects.

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

Illinois 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 Illinois Contract Surety Bond will vary and is dependent on: work on hand, business and personal financial statements, 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:

Small Business Association Bond Guarantee Program
Illinois IDHR Eligibility Number
Illinois Public Contracts
Illinois Department of Transportation - Contractor's Bulletin
Western Illinois University - Contract Procedures

Contact Our Surety Bond Specialists Today:

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



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