Contracts are generally done through a solicitation procedure where companies and individuals can bid on services 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.
Iowa Contract Bonds are often required by local municipalities, the federal government, universities, counties 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 IowaDot contract requirement) may be required.
Bids must be accompanied by a cashier's check or a bid bond. The bid bond must be in the amount designated in the advertisement for bids. The amount set will be equal to at least 5% and more than 10% of the estimated cost of the work. Unsuccessful bidders will have the bond returned to them. The successful bidder will have the bond returned to them after a contract form has been executed, a performance bond has been submitted, and the contract and bond have been approved.
There are several categories that fall under the umbrella of contract bonds which include:
Iowa Bid Bond: Ensures that the surety prequalifies the contractor bidding on the project. The bond guarantees that if the contractor is the low bidder, the surety will issue the performance and payment bonds.
Iowa Payment Bond: Guarantees that subcontractors, suppliers and laborers are paid.
Iowa Performance Bond: Guarantees the contractor will perform the contract, including finishing the project on time, staying within budget and other terms within the contract.
Iowa Supply Bond: Guarantees that the company will supply the goods with a specific timeline as outlined in the contract.
Iowa Proposal Guarantee Bond: Another term for Bid Bond and includes the same aspects.
Iowa Maintenance Bond: Guarantees materials workmanship for a certain period of time after a project is completed.
Iowa's Department of Transportation website contains valuable information for Iowa highway contractors. The Office of Contracts reports highway letting projects for interstate, primary and secondary road work, along with maintenance projects.
Iowa's Department of Administrative Services lists bidding opportunities for other agencies here. This includes construction for the Department of Natural Resources, Iowa State University, the University of Iowa and the University of Northern Iowa.
The Small Business Administration has a Bond Guarantee Program to help small contractors bid on projects
Most Iowa contractors can qualify for a FREE Bid Bond from SuretyGroup.com. The premium that you pay for an Iowa contract bond will vary and will be dependent on business and personal financials, scope of work, the amount of the project and other conditions.