Everything You Should Know About Judicial Bonds in Miami

by |

A court case involves two parties contesting their claims in front of a judge. The outcome leads to the judge asking one of the parties to fulfill an obligation. But what happens when that party backs out? What if they do not honor their word? That will surely create a mess. Thankfully, there are judicial bonds in Miami that can avoid that from happening.

How Does it Work
People contesting a case have to obtain a judicial bond that binds them to follow through with their obligations. If they don’t do so, they forego their right on the payment made on securing the bond. Moreover, the outcome may also turn out against them. Courts mandate these bonds themselves, so that their time is also not wasted and those contesting a claim can come to a satisfactory conclusion.

How to Obtain Judicial Bonds Miami
Judicial bonds are a kind of surety bond. So, just like most of the other bonds, you have to undergo a screening by the surety company before you get the bond. Your personal and financial history will be taken into account. You will also have to pay a percentage of the bond premium before the bond is issued to you.

The amount you need to pay to obtain a judicial bond will depend upon your past record. If your financial standing is strong and you have never defaulted on similar bonds before, you would have to pay a smaller percentage of the total amount. If you have defaulted before, then the payment you have to pay can even go up to the full value of the bond.

Always make sure that you choose your surety bond from a leading surety company. Ask them questions if you have any before procuring the bond. Get in touch with our team today to get your judicial bond.

 

How Bid Bonds Secure a Real Estate Transaction on Their Own

by |

Every construction project begins with the contractors bidding for it to win the contract. But what happens when the winning contractor backs off? That surely leads to losses for the project owner, who loses both time and money. This is why he needs some kind of assurance from the contractor so that he does not experience any loss.

Bid bonds Miami work as an assurance that the work will be completed as agreed. These bonds also help the project owner identify the contractors who have sufficient capital at their disposal to complete the work. This way, bid bonds also help to filter out all those contractors with high risk in the beginning itself.

What Makes Bid Bonds Secure
Companies that issue bid bonds keep their risk factor minimal. They ensure it by reviewing the applicant thoroughly. They assess the financial capability, as well as past performance, before setting the bid bond value. For some, the risk may be as low as 5%, for others, it can be close to 100%.
Bid bonds rarely come into play in real life. Any contractor who puts his money on the line by applying for a bid bond will never want to lose his deposit. This way, bid bonds also work as a deterrent against siphoning off any money. In the end, it’s a win-win situation for everyone.

Buy Yours from a Proven Company
A surety company issuing the bid bond has to be a proven name itself. They must understand the risks involved and should have the capital to make a payment if the same is required. With the right company at your side, you will have little to worry about. For more details, speak to your nearest surety company today.

Understanding How Maintenance Bonds Work in a Real Estate Project

by |

Every real estate transaction carries high value and a lot of risk with it. Surety bonds protect the investment of a project owner and ensures he gets value for his money. Contractors working on real estate projects have to furnish surety bonds before they are awarded the contract. They have to furnish maintenance bond in particular, which ensures that the building they build will stay in the optimum condition for at least a specified time. After that period, any defect or fault will not be covered under the scope of the bond.

Different Parties to Maintenance Bonds

• Contractors, purchase these bonds to showcase the quality of their work and durability. They have to get these bonds as a mandatory document to win the project.
• Project owners, who keep these bonds as a surety that their real estate project will be delivered as per contracted terms. If there is a default, they will be compensated for it and won’t have to cover for the default from their pocket.
• The surety company, which issues the bond runs a full check on the contractor’s background. They have to run these checks to make sure that they are putting their money on the right person. Before they issue the bond they create necessary channels required to later recover the money from the contractor in case he defaults.

More about Maintenance Bonds

Under maintenance bonds, contractors have to pay the entire money of the bond value in full, as compared to an insurance bond where the premium is just a fraction of the insurance value.

In case of a default, the contractors at times try to pay in cash for losses directly to the project owner. A maintenance bond restricts them from doing such a thing outside the scope of the bond.

Decoding How Performance Bonds Work and Why You Need Them

by |

Everyone expects that the person they hire should complete the assigned job. But there can be instances when that job is not completed as intended, or not completed at all. A surety bond binds the contractor taking up the project to deliver what he committed to do. In case he doesn’t, the surety bond compensates the loss incurred by the project owner, charging the contractor for the same later.

Understanding Performance Bonds
Performance Bonds ensure optimum performance by the contractors throughout the project duration. These bonds are the most commonly used surety bonds for public work contracts that have an estimated value of $100,000 or more. However, that is only one of the conditions for issuing them. These bonds can also be used for managing company operations that may not be bound by this cap. Bidding could be done initially, post which the winning contractor has to furnish a performance bond as a guarantee for successfully completing the project.

These bonds create a win-win situation for all, bringing lucrative contracts for contractors and ensuring highly satisfying results for the project owners.

How Performance Bonds Work
Performance bonds safeguard the interests of the project owner if a work is not done satisfactorily or if the contractor has defaulted deliberately or even unwillingly. Since this risk of default is always there, surety bond institutions (banks/insurance companies/private lenders) run an extensive check on the contractor’s history before issuing the bond. They take into account his past experience, risk capital, financial statements, and more. Under the circumstance where the contractor’s history doesn’t seem credible enough, he is not issued the bond, thereby denying him the chance to win a contract too.

This way, there is a very little scope for a miss to ever happen. And if it happens, the surety bonds take care of the losses. There are rarely any government or private projects involving large investments that happen now without performance bonds.