A Construction Performance Bond is a general type of contract performance surety bond that guarantees the fulfillment of a contract. The term "Construction Bond" is interchangeable with "Contract Bond."
There are three primary types of Construction Bonds:
Each of these Construction Surety Bonds involves three parties.
There are other Construction Bonds as well, including Subdivision Bonds.
Construction Bonds are required to bid on and perform nearly all construction projects, including all federally funded projects valued at $100,000 or more. Bid Bonds are required in order to submit a bid for a project, and Performance Bonds and Payment Bonds are generally required before construction can begin.
It would be difficult or impossible to secure most construction jobs without Construction Bonds. Bid Bonds are required to submit for many projects while Performance and Payment Bonds are mandated on all federally funded projects of $100,00 and above, and required on most private projects as well.
Bid Bonds and Performance Bonds are written for the value of the contract. Payment Bonds are written for the expected costs of subcontractors, laborers, and suppliers.
Construction Bond rates vary for each contract. They are calculated as a percentage of the full amount, usually between 1% and 5%. Viking Bond Service, Inc. makes it a priority to offer the program best suited for the Contractor at the lowest rate possible.
Construction Bond Requirements vary based on the job, but during your application process you can expect to provide:
For bids more than $250,000, you will also need to provide more detailed financial information. To find out the requirements for your Construction Surety Bond, contact Viking's Construction Surety Bond department today for a free consultation. We can provide you with expert level knowledge to answer any questions you may have, and Viking can provide any type of Contract Surety Bond in any amount.
Depending on your bonding needs, you can get the Construction Bond that you want in as little as a few business days. At Viking, we can help you expedite your bonding process by guiding you through the application process, and providing timely underwriting.
Viking can get you from bond application to bond in hand quick and easy. We work with both good and bad credit clients. Get started here.
A Performance Bond is a type of Contract Bond. These typically involve an awarded contract. Read on to learn more.
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