Articles
Contractors’ Performance and Payment Bonds
What is a contractor Performance and Payment Bond? Performance and Payment bonds ensure that a contractor completes a project, meets specifications, and provides payment to other parties on the job. The bond does not protect homeowners from poor workmanship or materials. Homeowners should check references to make sure a contractor has done good work previously
How Government Policy Performance Bonds Can Help
What is the purpose of a performance and Payment Bond? Performance and payment bonds are a type of surety bond, which is a promise to a third party that a contractor or subcontractor will perform according to the terms of their agreement. If they don’t, the person who provided the bond may have to pay
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The Legal Nature of Performance Bonds in Commercial Transactions
What is the purpose of a performance bond? A performance bond is a financial instrument issued by an insurance company to protect the builder and owner in case of default. It ensures that, should the contractor fail to complete their work within the specified time frame and perform all contracted tasks, the insurance company will
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Is Performance Bond Needed in Federal Projects?
Are performance bonds necessary? Yes, Performance bonds are necessarily required for contracts that involve construction projects. Government agencies will often seek out a contractor with a good track record and a financial capacity to complete the work from an established contracting company. In order to be considered for certain jobs, companies must display their qualifications
What is the Minimum Amount Required for a Bid Bond?
What is the bare minimum for obtaining a bid bond? Bid bonds are common term clauses in construction contracts along with performance bonds, payment bonds, and maintenance bonds. Like other types of bonding, the bid bond is a financial security agreement between two parties that assures one party will perform on an obligation under certain
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What is the Minimum Amount Required for a Surety Bond?
What is the bare minimum for obtaining a surety bond? Applicants should also be aware that most employers allow employees who transport property or money to do so without having obtained a surety bond, but they cannot let their employees handle cash if they have not been bonded. In these cases, the employer might supply
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Securing a Bid Bond
How can I get a bid bond? A bid bond is issued by a contractor bidding on a project to the owner of the project (general government) for an amount greater than or equal to the bid price. The contractor is basically pledging that if he wins the bid, he will enter into a contract
Securing a Surety Bond
How can I get a surety bond? In order to get a surety bond, there are three steps you need to take: 1) You have to have an obligation that would require a surety bond, which can be any of the following: A contract with another party where labor will be performed or payment is
Credit Score: Does It Affect Surety Bond Premiums?
Is it true that surety bonds are dependent on credit? Surety bonds are not based on a person’s credit history. Surety bonds, on the other hand, have nothing to do with credit! However, there is a link between your credit and the cost of a surety bond charge. So let’s look at what that is
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