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 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).
Contract bond types are as follows:
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 Small Business Administration has a Bond Guarantee Program assists small contractors whom plan to bid on projects.
The premium that you pay for a South Dakota Contract 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.
Contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday