973-377-7000
FAQ
Answer

A surety bond is a three-party agreement among the contractor (obligor), the surety bond company, and the owner (obligee). Surety bonds used in construction are called contract surety bonds.

Answer

We basically write three types of contract surety bonds: Bid bonds, performance bonds, and payment bonds. We will also underwrite select types of commercial surety bonds, such as License & Permit Bonds, Union Bonds, and Subdivision Bonds.

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No, surety bonding is like bank credit, not like insurance. The surety company's primary obligation is not to lend a contractor money, but to use its financial resources to support the contractor's commitment to completing their contracted jobs.

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Contract surety bonds assure project completion and payment to laborers, suppliers, and contractors. It also pre-qualifies contractors and screens out unqualified and irresponsible competition.

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Public agencies such as state, county, local, and federal government authorities all require contract surety bonds. Since 1893, the U.S. government has required contractors on federal public works contracts to obtain surety bonds. The current federal law, the Miller Act requires performance and payment bonds for all public work contracts in excess of $100,000, and payment protection for contracts above $25,000. Many private owners also require contract, surety bonds to assure they are getting qualified contractors, and to enhance their credit risk since surety bonds offer assurance that the contractor is capable of completing the contract on time, within budget, and according to specifications. More and more owners would rather shift the construction risk from the owner to the surety bond company.

Answer

In order to start the process we must gather all the necessary underwriting information to undergo an in-depth pre-qualification process, and meet with the company's principals. The contractor needs good references, experience matching the requirements of the contracts, and the necessary equipment and working capital to do the work.

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The contractor is still responsible to pay for all damages in the event of a claim, and reimburse the Surety Bond Company for all expenses associated with any claims, in accordance with the general indemnity agreement executed between the contractor and the surety bond company.

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The General Indemnity Agreement is an agreement between the contractor, its principals, and the surety bond company that indemnifies the surety of all future claims, and requires the contractor to act in good faith in the repayment of all damages caused by any claims

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Getting started is as easy as completing the forms, and submitting them for our review. If you should have any questions, you can contact us at 866-299-4145.

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Yes. We take great pride in helping contractors who have just started in business, or those that have had difficulty in getting bonded, or who have questionable credit. Additional underwriting criteria may be needed, such as collateral for those accounts that warrant it.

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Bond rates are based upon a number of factors, including analysis of your Business and Personal Financials, Credit Reports, and other underwriting criteria. The rates are variable, and can be adjusted according to these factors.

CONTACT INFORMATION

  • Westminster Corporate Center
    30A Vreeland Road - Suite 120
    P.O. Box 6
    Florham Park, NJ 07932


  • 973-377-7000

  • 973-377-5077

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Map DataMap data �2017 Google
Map data �2017 Google