Understand the required obligation.
Contract bonds support obligations connected to a specific construction or service contract. The surety may evaluate ownership, experience, financial strength, work program, project terms, and indemnity.
Common uses
- Bid security
- Contract performance obligations
- Payment to subcontractors and suppliers
- Public and private construction requirements
Information to prepare
- Bond forms and contract documents
- Bid date, project value, and completion schedule
- Work-in-progress schedule
- Business and personal financial statements when requested
- Relevant project experience and references
Frequently asked questions
Are all contract bonds instant issue?
No. Many require individual underwriting. Begin early enough for financial and project review.
What is an indemnity agreement?
It is a contractual obligation under which the principal and other indemnitors may be required to reimburse the surety for losses and expenses, subject to its terms.
Bond descriptions are general. Availability, underwriting, pricing, indemnity, collateral, form, and delivery vary. The application and issued bond control.