Payment and Performance Surety Bonds for Waterway and Marine Contracts
Contractors who specialize in waterway and marine bidding on marinas, bridges, docks, piers, barge terminals, underwater construction, or other water-related construction projects may be required to provide a payment and/or performance bond to meet contract requirements.
Many project owners, also known as an obligee in a surety bond, often will require marine and waterway contractors to obtain payment and/or performance bonds before the project can begin.
What's a Surety Bond?
A surety bond is a legal contract between three parties:
- the project owner who is requiring the bond (the obligee)
- the contractor who has to buy the bond (the principal)
- the surety company that issues the bond
Project owners want to be protected from contractors who don't fulfill the obligations of a contract. A surety bond guarantees that a project will be completed as stated in the contract. A contract can hold a contractor to specific budgets, time for completion, paying suppliers and laborers, and the type of work to be done.
If the contractor fails his obligations, then the project owner or obligee may submit a claim on the bond to the surety company. If the surety finds that the contractor is at fault, then the surety steps in to either complete the project, pay another contractor to complete, or make payment to the obligee or owner of the project. The contractor is then obligated to reimburse the surety for the work done or payments made.
How Much Will This Bond Cost?
The premium you pay for a waterway or marine construction contract surety bond depends on factors such as the bond amount, plus the condition of your business and personal financial statements. Contact our Surety Bond Specialists for a free quote that fits your specific situation.
Did You Know?
Contractors need to follow strict guidelines for local, state, and federal projects.Related Links:
Infrastructure Contractor Surety BondsPile Driver Contractor Surety Bonds
More Surety Bond Questions?
Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.
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