Tag: Payment Bond

Federal Government Contractors – Performance & Payment Bond Opportunity in August & September 2018

Performance and Payment Bonds for Federal Government Year-End September is a very important month for federal government contractors as September 30th marks the fiscal year end for the federal government. This means that they need to spend their budget in a “use it or lose it” mentality. Government contracting officers will be busy putting together projects and putting them out to bid in an effort to spend their funds. This opens the door for federal government contractors to potentially secure a large amount of work to ensure that backlog is strong going into 2019. You may recall due to The Miller Act, a performance and payment bond is required to be furnished for all federal government projects over $150,000 in contract value. This means that a federal government contractor should have the ability to get performance & payment bonds in all states where they are performing work. Not only that, but there is the importance of having the best bonding program possible in place. Since the surety bond market is so soft, there is an opportunity to improve on most bonding programs. Surety Bond Professionals can improve on all bonding programs in terms of: – Helping contractors bid larger...

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Performance & Payment Bonds in NY – New York Construction Bonds

Construction Bonds in New York Every construction job has a lot of moving parts, in the sense that it relies on a huge number of people with different skill sets. To ensure that all of these people carry out their duties properly and according to all applicable safety codes, construction bonds are usually required before a contractor or subcontractor can perform any work. There are several different types of construction bonds, including bid, performance, and payment bonds. Today we’re going to talk about the difference between a performance and payment bond NY, talk about who needs these bonds, and discuss why you still need insurance even if you have a surety bond. Everything You Need to Know About a Performance Bond in NY One common type of construction bond is a performance bond. As a contractor, you’ll often be required to obtain a performance bond from a surety company, and this acts as a promise to the client (the obligee) that you’ll complete the project as per the terms of the contract. This includes completing all the work, finishing on time, and coming in on budget. In a case where the contractor (the principal) doesn’t live up to those...

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Common Surety Bond Terms Every Contractor Should Know

For commercial construction contractors, securing a surety bond is often the key to winning public work and scaling up to larger private projects. Along the way, you’ll encounter specialized surety terminology that isn’t always easy to understand. This quick-reference guide explains the essential surety terms, financial concepts, underwriting terminology, and construction bond types every contractor should know to navigate the bonding process with confidence. New to surety bonds? Start with our Construction Surety Bonds Explained guide for an overview of how surety bonds work before exploring the terminology below. The Three Parties to a Surety Bond Every surety bond is a legally binding agreement involving three distinct parties. Understanding each party’s role is fundamental to knowing where the financial responsibility ultimately lies. Party Definition Principal The contractor or construction business required to obtain the bond and fulfill the obligations of the contract. Obligee The project owner, municipality, or government agency requiring the bond to protect public or private funds. Surety The specialized bonding company that financially backs and guarantees the contractor’s obligations to the obligee. The Five Most Common Construction Bond Types These are the core construction bonds contractors encounter most frequently when bidding on and executing projects. Bond...

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