Illinois Construction Bond
Contractors and companies seeking work on construction projects in Illinois should prepare to get different types of surety bonds that are collectively known as Illinois construction bonds. All the details you need to get the right bond are outlined below.
What is an Illinois Construction Bond?
Also known as an Illinois construction performance bond, this surety bond holds the bonded party financially liable if they don't meet performance standards stipulated under contract. For example, if a contractor does not complete work on time or up to quality standards, the other party that hired the contractor may file a claim against the bond seeking compensation for damages.
How does a Construction Bond work in Illinois?
When the surety company receives a claim against the bond, it launches an investigation into the details. As long as the claim is valid, the surety pays a settlement automatically. Surety bonds ensure that project owners can recoup losses caused by contractors who do not fulfill expectations. However, the surety is only an intermediary - they do not accept financial liability for the claim. Responsibility always rests with the bonded contractor, who must pay the surety back the amount of any claims settled, plus interest and fees.
What is the purpose of an Illinois Construction Bond?
Construction bonds hold contractors accountable for their mistakes, which in turn creates a financial incentive for them to meet the terms of a construction contract. Bonds also protect project owners from unexpected losses caused by contractors. Bonds are a tool for risk management, and an effective one at that, which is why Illinois construction bond requirements are a common feature of construction contracts.
Why get an Illinois Construction bond?
When there are Illinois construction bond requirements written into a contract, it's impossible to finalize that contract, start any work, or receive any compensation until you provide proof you have the required bond. There's no way around this requirement. So there's no reason to delay getting a bond. Viking Bond Service can get you a quote within 24 hours!
Who needs an Illinois Construction Bond?
Anyone required to get one as part of a construction contract. Bond requirements are usually clearly spelled out, but they can be confusing nonetheless. Viking Bond Service is here to help. Rely on our team to help you understand if, when, and in what way Illinois construction bond requirements apply to you.
Who are the parties involved in an Illinois Construction Bond?
Unlike insurance or loan agreements that exist between two parties, all surety bond agreements involve three parties:
- Principal - The party responsible for obtaining the construction bond(s) and paying for claims.
- Obligee - The party that writes the construction bond requirements and has the right to file claims against the bond
- Surety - The party that issues bonds to the principal and holds the principal responsible for any settlements the surety pays to the obligee.
How to get a Construction Surety Bond in Illinois
For any type of construction bond, the application process works the same: Contact us to get the contract bond application suitable to your specific contracted project. Complete the application with information about your business and background; submit to a credit check; turn over a copy of the surety bond requirements outlined in the contract; and provide any additional documentation the surety asks for. Underwriters will use this information to evaluate your credit risk and calculate your bond price. Expect to pay a small percentage of the total bond amount - less or more depending on your credit. Worried that bad credit may cause you to get denied for a bond? Viking Bond Service has a special program set up to assist bond seekers like you!
Why you should get your Illinois Construction Bond from Viking Bond Service
Bonds are a big part of the construction industry and an important consideration for any contractor or construction company. But they shouldn't be a distraction or a source of stress. At Viking Bond Service, we strive to get you ALL the Illinois construction performance bonds you need, as quickly, efficiently, and affordably as possible. You don't just need bonds - you need a trusted bond partner. You've found one in Viking Bond Service.
Get a construction bond from Viking Bond Service
The next time you need a construction bond, request a quote from Viking Bond Service. And the next time you need help with the bonding process, rely on our team for free assistance. You can contact us here or call 1-888-278-7389 to speak directly with one of our bond experts.
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