A contract is the result of a solicitation procedure where entities and individuals can bid on a service, construction project or goods. The process often involves a bid bond or bid letting form, entry to a vendor registration system, and could have other requirements. The links below provide more details to various contract processes.
Contract Surety Bonds are a requirement by most federal government agencies, local municipalities, counties, universities or private entities. The process generally begins with a bid process and if awarded the contract, a contract bond or performance and or payment bond (as an example a TXDot contract) may be required. There are several categories of contract bonds:
Bid Bond: A surety prequalifies the contractor is eligible to bid on the project. The bond is a confirmation that if the contractor is the low bidder, the surety can issue the payment and or performance bonds.
Performance Bond: Ensures the contractor will perform the terms of the contract, which includes staying within budget, finishing the project by a deadline and possibly other terms within the contract.
Payment Bond: A payment guarantee to subcontractors, laborers, suppliers.
Supply Bond: A guarantee to supply goods or materials within a specific timeline as specified in the contract.
Maintenance Bond: A guarantee of material workmanship for a specified time period after a project is completed.
Proposal Guarantee Bond: A term for Bid Bond.
The premium that you pay for a Texas Contract Surety Bond will vary and is dependent on business and personal financial statements, scope of work, work on hand, the amount of the project, experience and other conditions.
The Small Business Administration has a Bond Guarantee Program to help small business contractors bid on a project.
Contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday