Contracts are generally done through a solicitation procedure where companies and individuals can bid on services, goods, or construction projects. The process could include completion of a form for a bid bond, vendor application, and there may be other requirements. Below are links that provide more details to contract processes.
Contract Bonds are often required by local municipalities, federal government, counties, private entities or universities. The process generally begins with a bidding process and if awarded the contract, a contract bond or payment and/or performance bond may be required. There are several categories contract bonds which include:
Bid Bond: A prequalification process by a surety that confirms that a contractor is eligible to bid 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, including: staying within budget, finishing the project on time, and other terms within the contract.
Payment Bond: Is a guarantee that laborers, subcontractors, suppliers are paid (such as for a WSDot contract).
Maintenance Bond: A guarantee of materials workmanship within a certain period of time after a project has been completed.
Proposal Guarantee Bond: Another term for Bid Bond.
Supply Bond: A guarantee that the company will supply the goods with a specific timeline as stated in the contract.
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 Washington contract bond varies and is dependent on business and personal financial statements, scope of work, experience, the amount of the project and other conditions.
Contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday