Contracts are awarded through a solicitation procedure where companies and individuals can bid on services.
Contract Bonds are often required by the federal government, local municipalities, counties, universities or private entities for awarded contracts. The process generally begins with a bidding process, and contractors that are awarded contracts,payment and/or performance or contract bond may be required.
There are several types of contract bonds which includes:
Supply Bond: Guarantees that a company will supply goods within a specific time as stipulated in a contract.
Bid Bond: A pre-qualification process where a surety ensures that a contractor is elgible to bid on a project. The bond confirms that if the contractor is the low bidder, the surety will issue a performance and/or payment bond.
Performance Bond: Guarantees the contractor will perform the obligations set forth in a contract, including completion of a project on time and keeping costs within budget.
Proposal Guarantee Bond: Same description as "Bid Bond."
Payment Bond: Guarantees that subcontractors, suppliers and workers on a contract project are paid.
Maintenance Bond: Guarantees materials workmanship for a certain period of time after a project is finished.
The Small Business Administration has a Bond Guarantee Programassists minority and small business contractors bid on projects.
The premium that you pay for an Ohio contract bond will vary and be dependent on work on hand, 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