West Virginia Construction Bonds

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Surety Bond Professionals is a family owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your construction bond needs.


What Are West Virginia Construction Bonds?

West Virginia construction bonds protect project owners against financial losses caused by contractors. They require contractors to operate in full compliance with the law and live up to their contractual obligations. Failing to do so gives the injured party the right to file a claim for damages and be compensated for their loss up to the required bond amount.

What West Virginia Construction Bonds May Be Needed?

Some commonly required construction bonds in West Virginia are:

  • Bid bonds
  • Performance bonds
  • Payment bonds

Construction bonds may be required from contractors working on government-funded or private projects, particularly for larger ones. Other West Virginia construction bonds that project owners may require include:

  • Contractor license bonds (local only)
  • Maintenance bonds
  • Subdivision improvement bonds
  • Solar decommissioning bonds
  • Right of Way bonds

How Do West Virginia Construction Bonds Work?

Every West Virginia construction bond is legally binding on three parties with very different interests: 

  • The obligee is the party requiring the bond,
  • The principal is the contractor required to purchase the bond, and 
  • The surety is the bond’s guarantor.

The principal is legally obligated to pay valid claims. But the surety guarantees their payment by agreeing to pay claims initially, on the principal’s behalf, if necessary. The surety pays the claimant directly, which creates a debt the principal must repay to the surety. Not repaying the surety can subject the principal to legal debt recovery proceedings.

How Much Do They Cost?

The obligee establishes the required bond amount, and the surety assigns each principal a premium rate. Multiplying these two figures yields the annual premium cost for a West Virginia construction bond.

The premium rate reflects the underwriting assessment of the risk that the principal might not repay the surety for claims paid on the principal’s behalf. The best measure of that risk is the principal’s personal credit score. 

A high credit score is a reliable indication that the risk to the surety is low, so the premium rate will be low as well. A low credit score means a higher risk level, resulting in a higher premium rate. 

A well-qualified principal typically will be assigned a premium rate in the range of .5% to 3%.

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