Contracts are generally done through a solicitation procedure where an individual and/or company 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. The links below provide more details to contract processes.
Massachusetts Contract Bonds are often required by local municipalities, counties, universities, federal agencies 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 a MassDot contract) may be required.
There are several categories that fall under the umbrella of contract bonds which include:
Massachusetts 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 can issue the required performance and payment bonds.
Massachusetts Supply Bond: Guarantees that the company will supply materials or goods within a specific time as outlined in the contract.
Massachusetts Performance Bond: Guarantees the contractor will perform the duties set forth in the contract, including finishing the project on time, staying within budget and other terms within the contract.
Massachusetts Maintenance Bond: Guarantees materials workmanship for a certain period of time after a project is completed.
Massachusetts Proposal Guarantee Bond: Another term for Bid Bond.
Massachusetts Payment Bond: Guarantees that subcontractors, suppliers and laborers are paid.
The Small Business Administration has a Bond Guarantee Program to help small contractors bid on projects.
The premium that you pay for a Massachusetts Contract Bond varies and is dependent on business and personal financial statements, scope of work, the amount of the project and other conditions.
Contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday