Contracts are generally done through a solicitation procedure where services, projects or goods can be bid on. The process could include completion of a bid bond form, application into a vendor system, and other necessary requirements. Below are links that provide information on contract processes.
Contract Bonds are often required by the federal government, counties, universities, local municipalities, or private entities for a contract. The process begins with a bid process and if a contractor is awarded the contract, a contract bond or payment and/or performance bond is then generally required (such as for an RDot contract). There are several contract categories that fall under the umbrella of contract bonds which include:
Bid Bond: Ensures that a surety pre-qualifies the contractor that plans to bid on a project. The bond confirms that if the contractor is the lowest bidder, the surety may issue the performance and payment bonds.
Performance Bond: Guarantees the contractor complete the terms of the contract, including completion of the project on time and staying within budget.
Supply Bond: Guarantees that a company will supply goods and materials on time as specified in the contract.
Payment Bond: Guarantees that payment to suppliers, subcontractors, and laborers are made.
Maintenance Bond: After a project is completed, the bond guarantees material workmanship for a certain period of time.
The Small Business Administration has a Bond Guarantee Program that helps small contractors bid on projects.
The premium that you pay for a Rhode Island Contract Bond will vary and is dependent on business and personal financial statements., scope of work, the amount of the project and other conditions. Most often, bid bonds are issued at no cost.
Contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday