We are bondable up to 2 million.

Bid Bonds

A Bid Bond is issued by the Surety to the owner of the project in lieu of a required cash deposit. The cash deposit (usually 10% of the bid amount) is subject to full or partial forfeiture if the contractor is the low bidder and fails to either execute the contract or provide the required Performance and/or Payment Bonds.

In other words, the bid bond assures and guarantees that should the bidder offer the low bid, the bidder will execute the contract and provide the required surety bonds.

Character of the Business and Key Personnel

A surety would like to guarantee the performance of those contractors that have shown that they are honorable, dependable businesses that can be counted on to perform. A surety is interested in how long the contractor has been in business and its reputation in the industry among owners, architects/engineers, general contractors, subcontractors, and suppliers.

A surety will look at the contractor’s management structure and organization chart, the length of time current management has been in place, and the experience and track record of the managers. The contractor’s experience in the construction industry is important, but the surety is also interested in the contractor’s management skills. Basically, a surety looks for the characteristics common to any well-run business: a management team experienced in the industry, with a proven track record of success; an adequate accounting system with appropriate financial controls and reporting capabilities; and a history of stable, profitable business.