Who Needs a Contract Surety Bond?
A contractor is usually required to take out a contract surety bond during the bidding process. It is a three-way contract between the surety company, theprincipal (contractor), and the obligee (project owner).
This bond is required in government projects and most private projects. In some cases, contractors may ask for surety bonds from sub-contractors.
Types of Contract Surety Bonds
There are several types of contract surety bonds, including:
Performance Bond: It guarantees that the surety company will pay the obligeeif the principal(contractor) fails to perform as per the terms of the contract. The objective here is to protect the obligee from losses due to non-performance.
Payment Bond: It ensures that the principal will pay the subcontractor and the material supplier. This protects the obligee from claims if the contractor does not pay subcontractors for their services.
Bid Bond: It ensures that a contractor will sign the contract once the bid is awarded. Thisbond assures that unqualified contractors are kept out of the bidding process.
Maintenance Bond: It protects the project owner of a completed construction project for a period of time against defects in materials, workmanship, or overall design.
Why Choose Nielson, Hoover & Company?
Nielson, Hoover & Company is the number one provider of surety bonds in the United States. This makes us the surety bond experts. We specialize in bid bonds, performance bonds, payment bonds and maintenancebonds. We pride ourselves in our commitment tointegrity,service, and excellence.
You can call and speak with one of our surety bond specialists at 305.722.2663. Existing clients can call,submit a bond request online, or through our app.
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Companies We Represent
Our strength not only lies in our people, but in the company we keep. And since we represent the leading surety companies nationwide, our strength translates into greater capacity and better terms. It also enables us to adapt quickly to changing markets and deliver surety bond solutions that fit your specific needs.
Our core philosophy revolves around three key words – integrity, dedication and excellence. The reason more companies look up to us is because we continually look after them. We guarantee that no other company, nationwide, will provide you with better service, more negotiating power and better rates.
Nielson, Hoover & Company’s fast and convenient mobile application “#1 Bond Request” is a free app that allows you to quickly and easily submit a bond request from any location no matter how remote. This app was created so you can request a Bid or Performance and Payment Bonds anywhere, anytime.