If you are in the construction industry, you are probably going to need one of the many different types of bonds that are available. These are also called contract bonds, and they are essentially that will a surety bond below a type of financial guarantee that all of the bills that will be associated with the project that a company is involved with will be paid. One of the most common types is called a bid bond which must be taken out before people are allowed to bid on certain jobs. Let’s go over why they need to do this, as well as present the differences in the many different bonds that are available to show you how important it did bond actually is.
Different Types Of Surety Bonds
There are several different types of surety bonds that are an integral part of the construction industry. A construction bond for eligibility is the one that will guarantee that the company that is bidding on the project actually has the proper skill level necessary to complete the project. There are payment bonds which will guarantee that every single payment that must be paid to the many different subcontractors will be paid. Performance bonds essentially ensure that the work will be done to the expected level of competency. Finally, there are bid bonds which are going to protect the project owner that is allowing people to bid so that they will get their money.
How Do Bid Bonds Work
These are going to work to the advantage of the person that has projects where people are bidding on them. It allows them to sue not only the person that has defaulted on the project who took out the bond, but the person who issued the bond as well. This is why they are required by many people that are allowing people to bid so that they can prevent people from aberrantly bidding on every job that they see. When you are counting on someone to complete a project, and they do not, then you need to be compensated and that is the purpose of these bonds.
Why You Should Get Bid Bonds From Bond Express
The reason that you should get bonds from this particular company is that they are experts in the industry. They offer contractor bid and performance bonds, ones that are affordable, allowing contractors to be protected. There is a preferred credit approval which means you must have credit scores over 700 or higher. It also requires you to have a bonding need that is actually less than $350,000 per job. There are no financial statements required when turning in this application which is very short and easy to fill out. As long as you are able to meet the contract size, and complete the project in less than a year with the proper credit score, they will be approved in a business day or less.
If you need to get bonds for a job that you are going to bid on, Bonds Express is exactly what you need. Call them up today, or simply contact them through their website, to find out more information. They feature nationwide bonds, and bonds for specific states such as California, Florida and New York. Find out more today how Bond Express can help you.