What's a Contract Bond?
Contract bonds are a class of surety bonds which guarantee the performance of a contractor according to the specifications of a construction contract. There are various types of contract bonds. Bid bonds are often the first step in a job, as this type of bond is provided before the contract is even awarded.
Bid bonds are commonly required for government jobs. Contractors interested in bidding on a project will submit a bid bond, which holds them to fulfill the contractual obligations should they be awarded the bid.
Performance and payment bonds outline what tasks the contractor will accomplish and how the contractor will pay all of the workers, subcontractors and suppliers that work on their job.
Supply bonds are much like payment bonds, but they detail precisely how the contractor will pay his/her suppliers for materials. Obtaining a supply bond is a common requirement for public jobs.
Maintenance bonds guarantee the project owner, that the contractor will solve all maintenance issues during a specified maintenance period. It is a good idea for all contractors to get prequalified with a surety for future contract bonding needs. Jobs often come up quickly and bonding requirements tend to have tight deadlines to meet. Successful contractors are well prepared.
Whether you are a Colorado contractor currently looking for surety bonding or you are a contractor wanting to get prequalified for future jobs in Colorado, don’t delay – give Reeder Insurance a call today!