Contracts are generally done through a bid letting or solicitation procedure where companies and individuals can bid on goods, services or construction projects. The process could include providing a bid bond and other requirements. Below are links that provide more details to contract processes.
Contract Bonds are often required by the federal government, local municipalities, counties, universities or private entities. The process generally begins with a bid letting process and the low bidding contractors is awarded the contract, a payment and/or performance or contract bond (such as for a VTRANS or AIA contract) may be required. There are several contract types that may require a contract bond which include:
Performance Bond: Guarantees the contractor will perform the duties and/or obligations within a contract, including finishing a project on time, staying within budget and other terms of the contract.
Payment Bond: Provides a guarantee that subcontractors, suppliers and laborers receive payment.
Supply Bond: Guarantees that a company will supply goods with a specific timeline as stated in the contract.
Maintenance Bond: Guarantees materials and workmanship for a certain period of time after a completed project.
Proposal Guarantee Bond: Another term for Bid Bond and has the same aspects.
Bid Bond: Provides a prequalification from a surety that the contractor is eligible to bid on the project. The bond is a confirmation that if the contractor is the low bidder, the surety will issue the performance and payment bonds.
The Small Business Administration has a Bond Guarantee Program to help small contractors bid on contract projects.
SuretyGroup.com can often write Bid Bonds at no cost to you. Contact our Surety Bond Specialists to see if you qualify.
The premium that you pay for a Vermont Contract Bond will vary and is dependent on business and personal financial statements, scope of work, the amount of the project, experience, work on hand and other conditions.
Contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday