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. Several links are listed below that provide more details to contract processes.
Michigan Contract Bonds are often required by federal agencies, local municipalities, counties, universities or private entities. The process generally begins with a bidding process and if awarded a contract, a contract surety bond or payment and/or performance bond (such as an MDot contract) may be required.
There are several categories that fall under the umbrella of contract bonds which include:
Michigan Supply Bond: Guarantees that the company will supply the materials within a specific time as outlined in the contract.
Michigan 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 necessary performance and payment bonds.
Michigan Performance Bond: Guarantees the contractor will perform the duties outlined in the contract, including finishing the project on time, staying within budget and other terms within the contract.
Michigan Payment Bond: Guarantees that subcontractors, suppliers and laborers receive payment.
Michigan Proposal Guarantee Bond: Is another term for Bid Bond.
Michigan Maintenance Bond: Guarantees material workmanship for a period of time after a project is completed.
The Small Business Administration has a Bond Guarantee Program to assist small business contractors bid on projects.
The premium that you pay for a Michigan contract surety bond will vary in cost and is dependent on business and personal financial statements, work on hand, 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