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. The links below provide helpful information to contract processes.
Contract Bonds are often required by federal agencies, local municipalities, counties, universities or private entities. The process generally begins with a bid letting process, and if a contractor is awarded the contract he bid on, then a contract bond or payment and/or performance bond (such as for an MaineDOT contract) 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. SuretyGroup.com offers free bid bonds in most cases.
Supply Bond: A Guarantee that the company will supply materials and goods within a specific time as outlined in the contract.
Performance Bond: A guarantees that the contractor will perform duties listed in 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: A guarantee that subcontractors, suppliers and laborers are paid.
Maintenance Bond: A guarantee of material workmanship for a certain period of time after a project is completed.
The Small Business Administration has a Bond Guarantee Program assists small business contractors bid on projects
The premium that you pay for a Maine contract bond will vary and is dependent on business and personal financials, scope of work, the amount of the project and other conditions.
Contact our Surety Bond Specialists today at:
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