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What Types of Contract Surety Bonds May Be Needed in Maryland?

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Contracts are generally done through a solicitation process where individuals and companies can bid on goods, services or construction projects. 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.

Maryland Contract Surety Bonds are often required by private entities, universities, the federal government, local municipalities and counties. The process generally begins with a bidding process and if awarded the contract, a contract bond or payment and/or performance bond (such as for an MDot contract) may be required.

Types of Contract Bonds:

  • Bid Bond- Ensures that the surety prequalifies the contractor bidding on the project. The bond is a confirmation that if the contractor is the low bidder, the surety will issue the performance and payment bonds.
  • Proposal Guarantee Bond- Another term for Bid Bond and includes the same aspects.
  • Supply Bond- Guarantees that the company will supply the goods with a specific timeline as outlined in the contract.
  • Payment Bond- Guarantees that subcontractors, suppliers and laborers are paid.
  • Performance Bond- Guarantees the contractor will perform the contract, complete the project on time, stay within budget and other terms of the contract.
  • Maintenance Bond- Guarantees materials workmanship for a certain period of time after a project is completed.
  • 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
    Maryland - Open Bids and Contract Awards
    Maryland - Contracts, Bids & Proposals

    How Much Will This Bond Cost?

    Most contractors qualify for a Bid Bond at no cost. The premium that you pay for a Maryland Contract Surety Bond will vary and will be dependent on business and personal financial statements, scope of work, the amount of the project and other conditions.

    More Surety Bond Questions?

    Check out our FAQ page. Should you need or choose to buy a surety bond, SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.

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