Contracts are generally done through a solicitation procedure where an individual or company can bid on services, construction projects or goods. The process may include completion of a bid bond form, setting up as a vendor in a registry system, and other necessary requirements. Below are helpful links with details on contract processes.
Contract Bonds are often required by the federal government, local municipalities, counties, universities or private entities for contracts that have been awarded such as for the South Carolina Department of Transportation (SCDOT). 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 may be required. There are several types of contract bonds:
Supply Bond: Guarantees that a supply company will deliver the materials within a specific time as outlined in the contract.
Bid Bond: Ensures that the contractor bidding on the project has met surety prequalifications. The bond confirms that if the contractor is the low bidder, the surety will issue the bond for performance and/or payment .
Performance Bond: Guarantees that a contractor will perform the duties in a contract, which includes completion of the project on time, keeping within the budget and other requirements within the contract.
Maintenance Bond: Guarantees materials workmanship for a specific period of time after a project has been finished.
Proposal Guarantee Bond: Another term for a Bid Bond.
Payment Bond: Guarantees payments to subcontractors, suppliers and laborers for a project.
The Small Business Administration has a Bond Guarantee Program assist small business contractors bidding on projects.
The premium that you pay for a South Carolina contract bond varies and is dependent on business and personal financial statements, scope of work, the amount of the project and other conditions. Bid bonds are most often issued at no cost to you.
Contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday