are surety bonds and how do they relate to construction? According to the Small
Business Administration, a surety bond ensures contract completion if a
contractor defaults. They also state that there are four types of surety bonds
that relate to construction, which are as follows.
Bond: At the beginning of a contract, companies bid on the job.
Once the different companies submit a bid, one is chosen to fulfill the
contract. A bid bond ensures that the bidder will enter the contract and
furnish the payment and performance bonds when awarded the contract. The bid bond
helps ensure that there aren't a lot of bids submitted only to find out most of
them weren't serious about taking the job.
Bond: After the contract has been awarded to a company, that
company will need suppliers and might use subcontractors. A payment bond
ensures that the suppliers and subcontractors will get paid. Without this bond,
suppliers and subcontractors are not protected, and they might sue you for the
Bond: The contract was awarded to a company and you want to be
sure the job is finished according to the contract. A performance bond ensures that
the terms and conditions of the contract will be met.
Bond: This type of surety bond ensures that requirements that
are not directly performance related, but are related to the contract, are
do you need a surety bond? If you are bidding on a contract, a surety bond can
protect you. If you are having others bid on a project, then requiring them to
be bonded can also protect you.
Get the coverage you need. Call Americo
Direct Insurance at (214) 374-9997 for
more information on Dallas surety bonds.