Contracts are generally done through a solicitation procedure where companies and individuals can bid on construction projects, 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.
Contract Bonds are often required by local municipalities, the federal government, counties, private entities or universities. The process generally begins with a bidding process, and if awarded the contract, a contract bond or payment and/or performance bond (including KSDot contract bonds) may be required. There are several categories that fall under the umbrella of contract bonds which include:
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. Unlike most sureties, SuretyGroup.com writes most bid bonds at no cost to the contractor.
Proposal Guarantee Bond: Another term for Bid Bond and includes the same aspects.
Performance Bond: Guarantees the contractor will perform the contract, including finishing the project on time, staying within budget and other terms within the contract.
Supply Bond: Guarantees that the company will supply the goods with a specific timeline as outlined in the contract.
Payment Bond: Guarantees that laborers, subcontractors and suppliers are paid.
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.
SuretyGroup.com can often write contractor Bid Bonds at no cost. Contact us to see if you qualify. The premium that you pay for a Kansas contract bond will vary depending on business and personal financial statements, scope of work, the amount of the project and other conditions.
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