Bonds
(most commonly written)

1. Performance and Payment Bonds: are a financial guarantee that the contractor (Principal) will complete the contract (perform) for the owner/general contractor (obligee) and that the Principal will pay for all labor and materials in the contract. These bonds require extensive financial information to underwrite and may take from two to several days before a firm quotation or underwriting decision can be made. Depending upon type of construction and classification premiums can run from under 1% of contract cost up to 3-1/2% and could require collateral since they are a financial guarantee and underwritten similar to a bank loan.

   For an Underwriting Checklist, please click HERE.

2. Bid Bonds: guarantee the difference from next highest bidder should a contractor withdraw after bid award. These require the same underwriting as the Performance and Payment Bonds, since they obligate the bonding company (surety) to provide the Performance and Payment bond if the contractor's bid is accepted.

   For an Underwriting Checklist, please click HERE.

3. License and Permit Bonds: are normally required by municipalities for contractors to be allowed to perform work in their jurisdiction. These are easily underwritten usually cost about $100.

4. Tax Bonds: guarantee that an out of state contractor will pay taxes for a contract performed in the state the project is performed. Normally easily underwritten and often cost $500 or less.

5. Fidelity Bonds: guarantee the honesty of an individual or employee. There are a wide variety of fidelity bonds available to fit specific needs.

Contact us for more information regarding what we can do for you. We can provide indications based upon limited information.