Surety/Bonds

We specialize in surety bonds for contractors. We provide the following types of bonds:

Bid Bond

Used in conjunction with construction bidding processes. The bond acts as a guarantee that, if awarded the contract based on the bid submitted, the contractor will enter into a contract to perform the work at the price quoted. If the contractor declines to enter into a contract to perform the work at the agreed-upon price, the bid bond will reimburse the obligee (owner or upper-tier contractor) the difference between the defaulting contractor's bid and the next lowest bid, up to the penal sum of the bond.

Performance Bond

A performance bond guarantees that the contractor will perform the work in accordance with the construction contract and related documents, thus protecting the owner from financial loss up to the bond limit (called the penal sum) in the event the contractor fails to fulfill its contractual obligations.

Payment Bond

Guarantees that suppliers and subcontractors will be paid for materials and labor furnished to the contractor. The owner's purpose in requiring a payment bond is to guarantee that the project will be delivered free of liens.

License and Permit Bond

Required by a municipality or other public body as a condition to granting a license or permit to engage in a specified activity, this bond guarantees that the party seeking the license or permit (the obligor) will comply with applicable laws or regulations. These bonds can also be structured to provide indemnity guarantees to third parties who sustain injury or damage as a result of the obligor's activities as described in the license or permit when such a guarantee is required. For example, businesses that hang signs over public sidewalks may be required to provide indemnity guarantees for injuries to pedestrians.

To start the process for obtaining a surety bond we require the following items:

Copies of the last three year-end financial statements for the company (or tax returns if statements are not available).
Current interim statement (balance sheet and income statement) for the company.
Copy of most-current personal financial statement of each owner. (Click the link for a fillable PDF.)
Contractor's Questionnaire.
Resumes of each owner.
Current certificate of insurance.

Once you have these materials gathered, please call or e-mail Chris Downey or Sue Vance. These items may also be emailed as well.

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Surety/Bonds