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 listed below provide more details to contract processes.
Contract Bonds are often required by federal government agencies, local municipalities, counties, 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 (such as an AIA or MDT contract) bond may be required.
Types of bonds associated with contracts include:Payment Bond: Guarantees that subcontractors, suppliers and laborers are paid.
Performance Bond: Guarantees the contractor will perform the contract, including completing the project on time, staying within budget and other terms within the contract.
Supply Bond: Guarantees that the company will supply the materials as outlined in the contract.
Maintenance Bond: Guarantees materials workmanship for a certain period of time after a project is completed.
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 payment and performance bonds.
Proposal Guarantee Bond: Another term for Bid Bond and includes the same aspects.
The Small Business Administration has a Bond Guarantee Program to help small contractors bid on projects.
The premium that you pay for a Montana contract bond will vary and be dependent on business and personal financial statements, experience, 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