Contracts are generally done through a solicitation procedure where companies and individuals can bid on services and 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.
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 when a contractor is awarded a contract, a contract bond or payment and/or performance bond (such as for a NDOR contract) may be required.
There are several categories that fall under the umbrella of contract surety bonds which include:
Payment Bond: Guarantees that subcontractors, suppliers and laborers are paid.
Supply Bond: Guarantees that the company will supply the goods within a specific time period as outlined in the contract.
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 performance and payment bonds.
Performance Bond: Guarantees the contractor will perform the contract, including completing the project on time, staying within budget and other terms within the contract.
Proposal Guarantee Bond: Another term for Bid Bond and includes the same aspects.
Maintenance Bond: Guarantees material workmanship for a certain period of time after a project is finished.
The Small Business Administration has a Bond Guarantee Program to assist small business contractors bid on projects.
The premium that you pay for a Nebraska contract surety bond varies and will be dependent on business and personal financials, 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