Contracts are generally done through a solicitation procedure where companies and individuals can bid on construction projects, services, goods or other projects.
Minnesota Contract Bonds are often required by local municipalities, counties, federal government agencies, universities 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 for a MnDOT Contract) may be required.
There are several categories that fall under the umbrella of contract bonds which include:
Minnesota Supply Bond: Guarantees that the company will supply materials as outlined in the contract.
Minnesota Maintenance Bond: Guarantees materials workmanship for a certain period of time after a project is finished.
Minnesota 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.
Minnesota 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 is willing to issue the necessary performance and payment bonds.
Minnesota Proposal Guarantee Bond: Another term for Bid Bond.
Minnesota Payment Bond: Guarantees that payments are made to subcontractors, suppliers and laborers.
The Small Business Administration has a Bond Guarantee Program to help small contractors bid on projects.
The premium that you pay for a Minnesota Contract Bond will vary depending 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