Contracts are generally done through a bid letting procedure where companies and individuals can bid on services or construction projects. The process could include completion of a bid form, application to a vendor system, and other requirements. Below are links that provide more details to contract processes.
Contract Bonds are most 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 surety prequalifies the contractor bidding 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: Provides a guarantee that the contractor will perform the contract, including finishing the project on time, staying within budget and other terms within the contract.
Payment Bond: Guarantees that suppliers, laborers and sub-contractors are paid.
Supply Bond: Guarantees that the company will supply the goods with a specific timeline as outlined in the contract.
Proposal Guarantee Bond: Another term for Bid Bond and includes the same aspects.
Maintenance Bond: Guarantees materials workmanship for a certain period of time after a project is completed.
The Small Business Administration has a Bond Guarantee Program to help small business contractors bid on projects.
The premium that you pay for a Wyoming Contract Bond will vary and be dependent on business and personal financial statements, scope of work, the amount of the project, experience and other conditions. Bid Bonds in most cases are issued at no cost.
Contact our Surety Bond Specialists today at:
Hours: 8:00-5:00 CST, Monday through Friday