Contracts are generally done through a solicitation or bid letting procedure where companies and individuals can bid on construction projects, services or goods. The process could include completion of a bid bond form, application to a vendor system, and other requirements. Below are links that provide more details to contract processes.
Contract Bonds are often required by the local municipalities, universities, counties, federal government or private entities. 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 different types of contracts bonds which include:
Bid Bond: Ensures that the surety prequalifies the contractor and their financial status prior to bidding on the project. The bond confirms that if the contractor is the low bidder, the surety will issue the performance and payment bonds.
Proposal Guarantee Bond: Another term for Bid Bond and includes the same aspects.
Payment Bond: Guarantees that subcontractors, suppliers and laborers are paid.
Performance Bond: Guarantees the contractor will perform the contract, including finishing the project on time, staying within budget and other terms within the contract.
Supply Bond: Is a guarantee that the company will supply the goods within a specific time as outlined in the contract.
Maintenance Bond: Guarantees materials workmanship for a period of time after a project is completed.
The Small Business Administration has a Bond Guarantee Program to help small contractors bid on upcoming 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, work on hand, the amount of the project and other conditions.
Contact our Surety Bond Specialists today at:
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