Louisiana Construction Bond
Plan to get a Louisiana construction bond before winning any bids to work on public sector or large-scale projects in the private sector.
What is a Louisiana Construction Bond?
This type of surety bond encompasses multiple different types of contract bonds - bid, performance, & payment - that all hold contractors financially responsible if they fail to meet the terms of a contract.
How does a Louisiana Construction Bond work?
If a contractor backs out of a bid, drags out a project, fails to pay laborers, or do anything else that's required of them, the parties who are wronged by this behavior can file a claim against the surety bond seeking damages. The surety company that backs the bond will settle the claim, then collect the amount paid out from the contractor who caused the claim in the first place. Basically, construction bonds in Louisiana make contactors accountable for their mistakes.
Who should get a Construction Surety Bond in Louisiana?
Anyone who plans to bid on construction projects in Louisiana. Since bonds protect whoever is hiring a contractor, they're commonly required before starting any work. Plan to get a bond as soon as you discover it's required.
Who are the parties involved in a Louisiana Construction Bond?
There are three parties in this and all types of surety bonds:
- Principal - The contractor required to obtain surety bonds and pay for any settled claims.
- Obligee - The party able to file a claim against the bond due to unsatisfactory performance from the principal.
- Surety - The company that issues the bond to the principal and settles claims when the principal can't or won't. The principal must then pay the surety back.
How much does a Louisiana Construction Bond cost?
The cost is a small percentage of the total bond amount. Bond seekers with bad credit will pay slightly more to obtain a bond.
How are claims handled for a Construction Surety Bond in Louisiana?
The surety guarantees payment for all valid claims. To establish validity, the surety investigates all claims thoroughly. As long as the details prove true, the surety issues payment immediately before turning its attention to collecting the amount of the settlement (with interest and fees included) from the principal, who always has final financial responsibility.
How to apply for a Louisiana Construction Bond?
The application is a quick simple process when you work with Viking Bond Service. Our experienced contract bond agents will provide you with an application that fits your specific bond request. Along with the application, you must agree to a credit check, and turn over any other documents the surety underwriters request. Expect to get a quote for your surety bond back in as little as 24 hours.
Viking Bond Service - Serving Contractors Across Louisiana
We have everything you need to satisfy all your bond requirements. Get the process started or get more information first - call us at 1-888-278-7389 or reach one of our bond experts through the contact form on this page.
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