Getting ready to start work at a construction site and the contract owner asks for a bond? Learn how Livingston Insurance Agency can help you provide the bond fast, easy, and cost-effectively.
Any contractor will tell you the importance of having a bonding agent for when the need arises. After all, everyone wants to make a profit and get paid after completing the project. Livingston Insurance Agency can help you obtain the necessary surety.
What Are Contract Surety Bonds?
Contract surety bonds, aka construction bonds, are a guarantee required for construction projects. Issuance of the bond ensures all parties adhere to the contract terms. Three parties must sign the agreement: the obligee (the project owner), the principal (contractor), and the surety (insurer).
Types of Construction Bonds
A construction bond shows good faith to subcontractors, laborers, and suppliers handling the job. All public or federal contract jobs require surety bonds. And many private contracts also use them.
Several types of construction bonds exist, including:
- Bid bonds guarantee the contractor who wins the bid will also sign a project contract.
- Performance bonds ensure the contractor completes the projection according to the agreed-upon specifications.
- Payment bonds promise the contractor will pay all subcontractors, suppliers, and vendors for services.
- Maintenance bonds make sure contractors properly maintain the worksite for a set timeframe.
- Supply bonds guarantee the contractor will provide all materials and supplies as stated in the contract terms.
Need a Construction Bond? Livingston Has You Covered!
Many contractors enter into a contract without knowing it requires a construction bond. We can have you covered! Need a surety bond? We can help! Livingston Insurance Agency will cover all bases to get the necessary bonds for your project.
Need a bond to fulfill your contract? Get coverage today with a construction bond from Livingston Insurance Agency.