Mississippi Construction Bond
If you work as a contractor in Mississippi, you may need a specific type of surety bond called a Mississippi construction bond. Read on to learn the basics.
What is a Mississippi Construction Bond?
It's a way for the state of Mississippi to hold you financially accountable if you fail to perform as contractually obligated when performing a construction project. When that happens, the party that hired you may file a claim against the surety bond seeking damages.
How does a Mississippi Construction Bond work?
The surety company that issues and backs the bond agrees to pay for all valid claims it receives up to the total value of the bond. However, you must pay the surety back for any claims it settles. Construction bonds in Mississippi hold contractors accountable when they don't meet their obligations. They also provide a way for anyone negatively affected by bad contractors to recoup their losses.
Who should get a Mississippi Construction Bond?
Anyone required to do so by law or under the terms of a contract. Most public projects and large-scale private projects will require contractors to have some form of surety bond before finalizing a contact. If you need a surety bond, get one immediately.
Who are the parties involved in a Mississippi Construction Bond?
You are one of three parties involved:
- Principal - You, the bonded party. As the principal, you must pay for the bond and pay for all valid claims filed against the bond.
- Obligee - The party that hires you. The obligee may file claims against the bond seeking damages.
- Surety - The company that issues the bond and settles all claims. After settling, the surety collects the amount of the settlement from the principal, plus interest and fees.
How much does a Construction Surety Bond in Mississippi cost?
The cost (called the premium) is a small percentage of the bond amount. Exactly how much you pay depends on your credit history, business standing and work experience among other qualifying factors. Bond seekers with bad credit will pay slightly more, but they won't be automatically denied when they seek out a bad credit surety bond from Viking Bond Service.
How are claims handled for Mississippi Construction Bond?
The surety investigates all claims thoroughly, and settles all valid claims in full. However, the surety does not accept the financial liability for the claim - that always rests on the principal. When the surety settles a claim, it has the right under the bond agreement to use whatever legal means necessary to collect from the principal.
How to apply for a Mississippi Construction Bond?
It's a simple process: contact one of our construction bond experts, complete the provided bond application specific to your request, submit to a credit check, and supply any other documentation the surety requests. When you apply with Viking Bond Service, expect to receive a quote within 24 to 48 hours.
Viking Bond Service - Serving All of Mississippi
For more information, contact us at 1-888-278-7389 or through the form on this page. Our experienced, friendly agents look forward to working with you to get your next construction project started.
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