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Performance Bond Requirements

Requirements for performance bonds vary depending on the size and type of work to be performed. The risk assumed by the Surety is affected by many variables and underwriters take all aspects into consideration when approving (or declining) a Bond request, and offering pricing terms or associated requirements. Prices can also be affected by filed rates depending on the state in which the Bond is written. The fact is that risk determines rate one way or another in nearly all situations. After all, this can be considered the essence of the Insurance and Surety industry. To control as well as take measure of this risk the Surety requires specific items and / or forms which help in the process.

At , we have streamlined programs available for contracts up to $250,000. These programs have proven to be highly successful for Contractors with limited Bond activity. These Bonds are underwritten and issued quickly, and typically only require a credit check, copy of the contract or bid invitation, and a short application.

For larger and more complex Contract Bonds, we will generally require a full submission. This typically consists of a credit check, a full length Contractor questionnaire, copy of the contract or bid invitation, prior year and current business financials, personal financial information on owners and a bank letter. Please contact our Contract department today for a free consultation. We can generally provide an indication of the approval terms by answering a few simple questions.

We realize that in a volatile economy Contractors can and do fall on hard times. We have programs in place to assist those that might not otherwise qualify for Bonding capability. Please contact one of our Contract bond specialists to discuss the particulars of these programs. Our Contract Department is trained to gather information over the phone in initial consult so as to gain and offer a general idea of what terms would be available to you or your Contractor client on a given project. We offer this service regardless of the amount of the contract or state in which the work is to be done.