Contracts are generally done through a solicitation procedure where companies and individuals can bid on construction services, projects 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 federal government, local municipalities, counties, universities 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 several categories that fall under the umbrella of contract bonds which include:
Bid Bond: A prequalified contractor by a surety 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.
Payment Bond: A guarantee that subcontractors, suppliers and laborers are paid.
Performance Bond: Guarantees the contractor will perform the duties listed in the contract, including finishing the project by the deadline, staying within budget and other terms of the contract.
Supply Bond: Guarantees that the company will supply the goods with a specific timeline as outlined in the contract.
Maintenance Bond: Guarantees materials workmanship for a certain period of time after a project is completed.
Proposal Guarantee Bond: Is a Bid Bond and includes the same aspects.
The Small Business Administration has a Bond Guarantee Program which provides assistance for small business contractors.
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 Wisconsin Contract Bonds varies based on business and personal financial statements, experience, 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