Contract surety bonds secured with Midwest Risk Partners.
A surety bond is a great way to guarantee that an investment is not lost. We offer a broad range of solutions to aid in your safety and security. Contact us for more information or if you do not see what you are looking for below.
When would a surety bond be necessary?
A surety bond is an unusual form of insurance in that one person or organization pays for it, while another receives the benefit. The big difference between this and ordinary insurance is that the insurer can and will go after the person or business at fault to get money back. The point of the surety bond is that the agency gets the assurance that it won’t have to chase after the money itself.
The difference between the principal and the obligee.
While government agencies commonly insist on a surety bond, it can work with any two organizations. The one that purchases the surety bond is “the principal,” while the one that gets any payout is “the obligee.”
We offer a broad range of contract surety bonds for your convenience.
Protecting you is our ultimate focus, that’s why we offer the following solutions for your needs.
- Bid Bonds
- Payment and Performance Bonds
- Maintenance Bonds
- Subdivision Bonds
- Retainage Bonds
Learn more about the available bonds below.
A bid bond provides a financial guarantee that a bid has been proposed in good faith. When a surety issues a bid bond to a contractor, they are assuring the contractor will enter into the contract at the bid price. It supports that the contractor is qualified for the necessary performance and payment bonds.
Performance and payment bonds can be issued individually but are most commonly issued together. Separately, performance bonds are required by the obligee (owner) to insure against financial loss in the event the contractor (principal) is incapable of performing the contract according to its terms and conditions. It guarantees against faulty workmanship and materials for a specific period of time. Payment bonds guarantee the contractor will pay the suppliers, laborers, and subcontractors they have involved in the project.
Maintenance bonds protect against faulty workmanship and materials for a specific period of time—usually, one or two years after the bond contract is complete. Request more information or secure a maintenance bond by using the form below.
Subdivision bonds guarantee a city or township that a contractor will construct improvements for the good of the public. Request more information or secure a subdivision bond by using the form below.
A retainage bond allows an owner to hold security to cover their exposure as retainage would do without withholding the actual funds from progress payments. Request more information or secure a retainage bond by using the form below.
If there’s anything else you need to know about surety bonds, contact us today.
Contract Surety Bonds Request
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