Contracts are generally done through a solicitation procedure where companies and individuals can bid on construction projects, services or goods. The process could include completion of entering the business into a vendor registry system, completion of a bid bond form, and other requirements. Below are links that provide more details to contract processes.
Contract Bonds are required by the federal government, counties, local municipalities, universities- state or private or private entities and corporations. The process generally begins with a bidding process and if awarded the contract, a contract payment and/or performance (such as a Utah Department of Transportation (UDOT) contract) or contract bond may be required. There are several categories of contract bonds which include:
Bid Bond: A surety prequalifies the contractor bidding on the project. The bond confirms that if the contractor is the low bidder, the surety will issue the performance and payment bonds.
Performance Bond: Guarantees the contractor will perform the contract, which includes projects completed on time, keeping costs within budget and any other pertinent terms within the contract.
Payment Bond: Payment guarantee to subcontractors, suppliers and laborers.
Supply Bond: A guarantee goods will be supplied with a specific timeline as outlined in the contract.
Maintenance Bond: A guarantee of material workmanship for a certain period of time after a project has been completed.
Proposal Guarantee Bond: Another name for Bid Bond.
The Small Business Administration has a Bond Guarantee Program to help small business contractors bid on a project.
SuretyGroup.com often writes Bid Bonds at no cost to you. Contact our Surety Bond Specialists to see if you qualify.
The premium that you pay for a Utah Contract Bonds will vary and is dependent on work on hand, experience business and personal financial statements, scope of work, the amount of the project and other conditions.
Contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday