Surety Bonds & MORE IN ceres, CA, Mantaeca, CA AND SURROUNDING CITIES

It’s a guarantee of the correct performance of an obligation. That obligation may arise out of a contractual relationship, or it may exist because of a statute or ordinance governing the principal’s conduct.

A bond is required of a contractor submitting the lowest bid on a project. If the contractor then refuses to undertake the project, the bid bond assures that the developer will be paid the difference between the lowest bid and the next lowest bid. The bid bond encourages contractors to make serious bids and live up to their obligations.

A bond issued by an insurance company to guarantee satisfactory completion of a project by a contractor. For example, a contractor may issue a bond to a client for whom a building is being constructed. If the contractor fails to construct the building according to the specifications laid out by the contract, the client is guaranteed compensation for any monetary loss. A Performance Bond guarantees the faithful performance of the contract and payment (payment bond) of materials and labor by the contractor to all subcontractors and material suppliers. The bond is submitted by the winning bidder upon award of the contract. The Performance & Payment Bond are typically issued together, as they are so closely related. 

A guarantees payment to laborers, suppliers, and subcontractors in the event of the contractor defaulting. Typically, a payment bond is issued with the performance bond, termed a “Performance & Payment Bond”. 

The process of obtaining a surety bond is very similar to obtaining a bank loan. Call us and we can walk you through the process which will save you time and money!

Can Wyatt Insurance Agency help me get my license bond for my contractors’ license? Answer: Yes

We have excellent sources for license bonds for contractors needing to renew their contractors’ licenses or new contractors just getting licensed.

Surety bond premiums vary from one surety to another but can range from one-half of one percent to two percent of the contract amount, depending on the size, type, and duration of the project and the contractor. In many cases, performance bonds incorporate payment bonds and maintenance bonds. When bonds are specified in the contract documents, it is the contractor’s responsibility to obtain the bonds. The contractor generally includes the bond premium amount in the bid and the premium generally is payable upon execution of the bond. If the contract amount changes, the premium will be adjusted for the change in the contract price. Payment and performance bonds typically are priced based on the value of the contract being bonded, not necessarily on the size of the bond. Commercial bonding has a greater range of pricing; high-risk programs have a high premium and 10% collateral.