Contracts come from a solicitation procedure where companies and individuals can bid on services, goods or construction or other projects. The process can include a bid proposal, completion of a bid bond form, apply as a vendor, and other related requirements. Below are links that offer more details of contract processes.
Contract Surety Bonds are usually a requirement by federal government agencies, local municipalities, counties, universities or private entities contract awards. The process generally begins with a bid letting process, and if awarded the contract, a contractor is generally required to obtain a contract bond or payment and/or performance bond (such as for a SDDot contract).
Performance Bond: Makes certain that a contractor will fulfill the obligations of the contract, including staying within the project time line and budget.
Payment Bond: Guarantees the payments to suppliers, subcontractors and laborers for goods and services.
Supply Bond: Guarantees that supply goods are ordered and delivered within a specified time as outlined in the contract.
Proposal Guarantee Bond: Is another form of Bid Bond.
Bid Bond: The process where a surety prequalifies the contractor bidding on the project and issues a bond. The bond confirms that if the contractor is the lowest bidder, the surety can issue a payment and or performance bond.
Maintenance Bond: A guarantee of material workmanship after the completion of a project, for a certain period of time.
The premium that you pay for a South Dakota Contract Surety Bond will vary and is dependent on experience, business and personal financial statements, scope of work, the amount of the project and other conditions. Bid bonds are usually issued at no cost.
The Small Business Administration has a Bond Guarantee Program assists small contractors whom plan to bid on projects.
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
For a downloadable application