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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