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. Below are links that provide more details to contract processes.
Contract Bonds are often required by a federal government agency, 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 for an NDDot contract) may be required.
The following are types of bonds associated with a contract:
Supply Bond: A Guarantee that the company will supply the goods with a specific timeline 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 will issue the performance and payment bonds.
Performance Bond: guarantees the contractor will perform the duties in the contract, including finishing 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 requirements
Payment Bond: A guarantee that subcontractors, suppliers and laborers are paid.
Maintenance Bond: A guarantees of material workmanship for a certain period of time after a project is completed.
The Small Business Administration has a Bond Guarantee Program to assist small business contractors bid on projects.
The premium that you pay for a North Dakota contract bond will vary and is dependent on business and personal financial statements, scope of work, the amount of the project, experience, and other conditions.
Contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday