Contracts are generally done through a solicitation procedure where companies and individuals can bid on services, goods or construction projects. The process could include completion of a bid bond form, application to a vendor system, and other requirements. Below are links that offer details for 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 awarded the contract, a contractor may need to obtain a contract bond or payment and/or performance bond. There are several types of contract bonds which include:
Supply Bond: Guarantees that the company will supply the goods within a specific time as outlined in the contract.
Bid Bond: Ensures that the surety pre-qualifies the contractor bidding on the project. The bond confirms that if the contractor is the low bidder, the surety may issue the performance and payment bonds.
Performance Bond: Guarantees the contractor will finish the contract, including completing the project on time, staying within budget and other terms within the contract. (Such as for a NCDot 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: Guarantees material workmanship for period of time after a project has been completed.
The Small Business Administration has a Bond Guarantee Program to help small contractors bid on projects.
The premium that you pay for a North Carolina 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