Tag: Payment Bond

August 3, 2018

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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July 31, 2017

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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February 7, 2017

A Quick Guide to Surety Bond Terms

Once you have made the decision that a surety bond can help grow your business, knowing the basic construction surety bond terms can help to expedite the application process.  And, it also helps to know which bond you will need for specific parts of the project.  Yet, if looking for a more comprehensive description, our other blogs on the topic can help. What is a Bid Bond? A project owner may require this bond when bidding for a job.   Usually needed in public construction projects, it ensures that the bidder is able to complete the job at their proposed bid. What is a Payment Bond? This bond protects those associated with the jobs.  This may include other contractors, subcontractors, laborers and material suppliers. What is a Performance Bond? This ensures that the job will be completed as per the contractual stipulations. What is an Ancillary Bond? Not used as often as the previous bonds, this bond covers specifications not mentioned in the contract.  For example, stylistic elements. What is a Subdivision Bond? A project owner may require this bond to cover such projects as replacing a sidewalk or sewer system. These five terms can help you to decide which...

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