Contracts are generally done through a solicitation procedure where companies and individuals 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. Listed below are links that provide more details to contract processes.
Contract Bonds are often required by the federal government, local municipalities, counties, universities or private entities. The process generally begins with a bidding process, and if a contractor is awarded the contract, a contract bond or payment and/or performance bond (such as a NHDot contract) may be required.
There are several categories that fall under the umbrella of contract bonds which include:
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.
Supply Bond: Guarantees that the company will supply the goods with a specific time period as outlined in the contract.
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.
Payment Bond: Guarantees that subcontractors, suppliers and laborers are paid.
Maintenance Bond or Guarantee Bond: Guarantees material workmanship for a certain period of time after a project is completed.
The Small Business Administration has a Bond Guarantee Program to help small business contractors bid on projects.
The premium that you pay for a New Hampshire contract bonds vary and are dependent on expernience, business and personal financials, 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