Set your construction or contracting business up for success by learning the ins and outs of construction bonds in Iowa.
First, it's a catchall term that describes a number of different types of surety bonds: bid bonds, performance bonds, payment bonds, and warranty bonds. Second, Iowa construction bonds are a way to hold contractors financially accountable when they fail to meet contractual obligations.
If someone has been wronged by a bonded contractor in Iowa, that party may file a claim against the bond seeking damages. The surety company that issues the bond automatically settles all valid claims, guaranteeing compensation for anyone wronged by the contractor. Afterwards, the surety company collects the amount of the settlement from the bonded contractor - the party that's financially responsible for all claims.
Most contractors in Iowa will need one at some point, and more likely at multiple points. Bonds are required for most public sector and commercial sector projects, but a bond requirement can be written into any construction contract no matter how small.
The size of the bond depends on the scale of the construction project, and the cost is a small percentage of the size. How much you pay for the surety bond depends on your credit, financial history, and business strength. With Viking Bond Service, bad credit doesn't have to keep you from meeting Iowa construction bond requirements.
Before settling any claim, the surety conducts an investigation into the details of the claim. After settling any claim, the surety uses whatever legal means necessary to collect the amount of the settlement (with interest and fees added) from the principal (the contractor that caused the claim).
To apply, speak to one or our contract surety bond agents who will provide you with the right application for your specific bond requirement. Afterward, agree to a credit check, and supply any additional documentation the surety requests. Get a quote back within 24 hours when you work with Viking Bond Service.
Don't let the bonding process be an obstacle to your business success. Get the bonds you need quickly and affordably by working with Viking Bond Service. To get started or get additional information, contact one of our bond experts - write to us through the contact form on this page, or call 1-888-278-7389.
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