This infographic titled ‘All About Contractor Surety Bonds’ provides us with an overview of the bond, who it protects and how you can get a bond quickly. It is aimed at contractors who are looking to buy the bond, giving them concise, but quick information.
What is contractor surety bond?
The contractor surety bonds are common in the construction industry where contractors are often required to buy the bond in order to bid on a particular project. Like any other surety bond, it has three parties — the principal, the surety and the obligee. The contractor who is buying the bond is the principal. The party that asks the contractor to buy the bond is the obligee. This is usually the project owner. The surety is the company that issues the bond and guarantees the contractor’s obligation.
Who does the bond protect?
There are two main beneficiaries of the contractor surety bond:
The obligee: The bond guarantees that the contractor will be held liable for any damages that occur due to their negligence. This protects the obligee from paying for expensive damages that may occur during construction due to the contractor’s actions. The bond clearly spells out the responsible party and hence, protects the obligee from being held responsible as the project owner.
The public: By making the contractors responsible for their actions, the contractor surety bond forces the contractors to act responsibly. The heavy penalties act as a deterrent, against substandard construction ensuring high quality. This will eventually benefit the public who will later use the construction.
How to buy a contractor surety bond?
There are two simple methods you can employ:
- Call a surety company set up a meeting.
- Fill out a simple contract form online.
For more information, please refer to the info-graphic below.
No one knows Surety Bonds like NHC:
At Nielson, Hoover & Company, the only thing we do is Surety Bonds and we do it better than any other company out there. We specialize in all types of Surety Bonds – from Bid Bonds, Performance Bonds, Payment Bonds, and Maintenance Bonds to Commercial Bonds, Judicial Bonds, License & Permit Bonds, Fidelity Bonds, Payment & Performance Bonds, Public Official Bonds, and Subdivision Bonds.
At NHC, our people make our company. In fact, we have the largest staff of experienced professionals – larger than any other agency, larger than any surety company in the market.
We do business on your terms. That’s why we offer you multiple ways to request your bonds. Whether it’s online, an email, a fax, in-person or through our #1 Bond Request app or the industry’s first and only web-based portal, “Suretegrity”, where you can apply online and securely print a certified surety bond with just the click of a mouse. No matter how you apply, our simple application process is designed to make the job fast, efficient and accurate.
We are experts in all aspects of the construction industry, from understanding contracts and subcontracts to the details of how the industry’s accounting procedures and sureties function. This comprehensive knowledge, combined with a keen sense of the markets, allows us to tailor the perfect surety solution for our clients.
Over time, we’ve become trusted advisors to both the agents and the surety companies we represent.
Because of our knowledge, experience and the relationships we’ve built, only Nielson, Hoover & Company can guarantee you better service, more negotiating power and better terms than anyone else in the industry.
Nielson, Hoover & Company. You don’t become number #1 overall, unless you’re #1 through and through. To start working with the nation’s number one provider of Surety Bonds, visit nielsonbonds.com or call 305.722.2663.
