Surety Bonds for Contractor Bonds
What are Contractor Bonds?
A contractor bond guarantees that a contractor will adhere to the construction contract and will also pay, within a specified time, any subcontractors, laborers and material suppliers. The benefits of a contractor bond is that it ensures that the project progresses smoothly and ensures project completion. In regards to public projects, surety bonds help support pre-qualification of contractors, payment protection for subcontractors and protection for the public (in the case that the contractor fails to adhere and complete the contractual obligations, the public will not lose out on taxes used towards the project).
There are different kinds of contractor bonds:
A bid bond is an assurance from the surety, who guarantees the principal that the contractor is capable of starting and completing the project.
A performance bond ensures adequate performance and completion of a construction project.
A payment bond is a three way contract between the owner, contractor and surety and ensures payment for labor and materials needed for the project.
A maintenance bond contractually obliges the contractor to settle and sort out defects that may occur after the project is completed. There is usually a specified date when this obligation is no longer valid.
Will I need all four contractor bonds to compete for a project?
Technically, no. But having any or all of these contractor bonds helps to give the project owner confidence in the contractor’s ability to complete the project successfully.
Can I get a contractor bond if I have bad credit?
Yes. Although you may have to pay a higher premium.
Get a Contractor Bond today!
1) Fill out the form on our website – this takes 30 seconds of your time and we will get back to you with a quote in less than 24 hours (oftentimes within the hour).
2) Call us directly at 781-559-0568 – we are here to help!