Contract Bonds, Bid Bonds, Performance Bonds And More..
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Click Here To Download Contractor's
Bond Kit
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A surety bond is a three-party agreement between the principal (the contractor),
the obligee (owner) and the surety, which guarantees the principal will complete
a project as specified in the contract documents. It can be considered as a
Bid Bond, Performance Bond, Payment and Performance Bond,
or Contract Bond.
This page will explain in detail how to submit Contract Bonds. Click on
each to learn
more.
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Contractor’s Questionnaire:
A contractors questionnaire is basically a snapshot of your company. Each section
is designed to give us background information on your company and its work and credit
history. It is important to have this information so that we can determine the right
direction to proceed with your bonding.
Get Contractor's Questionnaire.
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CPA Prepared Financial Statements
Please provide copies of the company’s CPA prepared year end financial statements
for the last three years.
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- These statements must be prepared by a CPA based on the percentage of completion
method.
- If the most recent statement is older than six months, please include an interim
statement.
- If your company is new or newly incorporated, please have your CPA prepare an opening
statement.
- If you do not have a CPA, contact us immediately for assistance.
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Personal Financial Statement
All owners, stockholders or members must provide a personal financial statement.
Remember that your personal financials are just as important as your corporate.
Please be sure that your statement is current and accurate. We may ask that you
verify any information provided on your personal statement.
Get Personal Financial State Form.
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Tax Returns
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- Personal Tax Returns — Please provide us with personal tax returns for the
last three years for all owners, stockholders or members.
- Corporate Tax Returns - Please provide us with your corporate tax returns
for the last three years.
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Bank Reference Letter
Please have your bank representative complete this form to provide evidence of borrowing
capacity and/or lines of credit. If you do not have a line of credit, talk to your
banker about obtaining one.
Get Bank Reference Letter Form.
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Work on Hand
Please provide a breakdown of all current jobs (bonded & unbonded). List only projects
of $50,000 or more and do not list completed projects. This will give us an idea
of your current working capacity.
Get Work On Hand Form.
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Business Plan
Your business plan should outline your current and long-term goals for the company.
It is important for us to have an idea of where your company is headed so that we
can get you set up in the right bonding program.
Get Business Plan Form.
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Resume
All owners, stockholders and key personnel should submit a resume. Your resume should
state your past experience and current expertise.
Get Resume Form.
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Reference Letters
As your surety agent, our goal is to build a long term relationship with you and
help you achieve success in bonding as well as all aspects of your business. As
such, we need to see that you have been able to build relationships with previous
employers and suppliers. We also need to see that you have been able to complete
previous projects on time and within the scope of the contract.
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- Obligee - Please have a representative from your three largest
projects complete this form.
Get Obligee Form.
- Supplier - Please have a representative from three suppliers complete
this form. Get Supplier
Form.
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Certificate of Insurance
Please provide a certificate of commercial coverage. Most contracts require you
to have specific coverage and we need to make sure you follow all terms of the contract.
Your insurance provider will be able to help you with this.
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Indemnity Agreement Information
When you are officially set up with a surety, all owners, stockholders, members
and their spouses will need to sign a general indemnity agreement. This form will
provide us with all the information needed to draw up the indemnity agreement. Be
sure all names and address are correct to avoid future delays.
Get Indemnity Agreement Information Form.
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In order to be ready to submit bond requests, make sure all of the previous items
have been submitted and accepted. If you have any questions about any of the requirements,
please contact us immediately. Scroll to the next slide to learn how to submit a
bond request.
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After completing and submitting all items listed in the bond kit, follow the directions
below to request a bond.
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Bid Bond
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- Complete a
Bid Bond Request form
and be sure to complete all fields.
- Complete a
Job Cost Breakdown–
be as detailed as possible.
- Provide us with a copy of the solicitation, invitation to bid or request for proposal.
Make sure there is a specific bond requirement included.
- Provide us with any special bond forms to be used.
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Payment and Performance Bond
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- Complete a
Payment and
Performance Bond request form. Be sure to complete all fields.
- Complete a
Job Cost Breakdown.
- If the project was bid, provide us with the bid results.
- Provide us with a complete copy of the contract to include the bond requirements.
- Provide us with any special bond forms to be used.
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- Once you have completed all necessary forms and have all other items, submit to
us via e-mail or mail to get started.
- Remember, the faster you get us all the required items, the faster we can get you
set up and ready for bonding.
- Prefer to download our bond kit all at once? These links will allow you to access
all necessary forms at once:
Bond
Kit &
Kit Letter.
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- What is a surety bond? A surety bond is a three party agreement
between the principal (the contractors), the obligee (municipality or owner) and
the surety, which guarantees the principal will complete a project as specified
in the contract documents.
- How do I know if I need a surety bond? Check your contract. The
contract documents will usually state whether or not you will need to obtain a surety
bond. When in doubt, check with the obligee.
- What is the difference between a payment bond and a performance surety bond?
Usually a payment bond and a performance surety bond will be issued together. A
payment bond guarantees that the contractor will pay specified suppliers and subcontractors
for work performed on a project. A performance bond guarantees the principal will
perform all work specified within the scope of the project.
- What is a bid bond? A bid bond guarantees to the obligee that the
bid will be submitted in good faith and the contractor will enter into the contract
at the bid price should they be awarded the job. It also guarantees the principal
will obtain the required payment and performance bonds within the allotted time.
- How much does a surety bond cost? While each surety may differ,
The Surety Group Agency, LLC bases the bond premium on contract price. Premium usually
ranges from 1% to 4% of the total contract price depending on the financial strength
of the company, the size and scope of the project and the experience of the contractor.
- Why do I need CPA prepared financial statements in order to obtain a surety
bond? In essence, a surety bond is a credit relationship. Because of this,
applying for a bond is similar to applying for a bank loan. As with any credit relationship,
it is important for the surety to have an accurate and complete picture of your
company’s financial standing prepared by an outside independent third-party source.
- What kind of financial statement do I need? Most sureties prefer
an audited statement for larger jobs, but may accept a review or compilation depending
on the size of the project. An audited statement provides verification of both internal
and external accounting principles while a review presents a thorough review of
accounting methods used. A compilation provides little or no guarantee of accurate
accounting methods. Most sureties only accept financial statements prepared using
the percentage of completion method.
- Why do I have to provide personal financial information to obtain a surety
bond? While a surety company does not enter into a bond expecting a loss,
they must have an accurate financial picture of the contractor, as well as all individual
parties with ownership, in the event of a loss.
- How do I begin the bonding process? Contact The Surety Group Agency,
LLC! Our knowledgeable staff can assist you in all aspects of the bonding process.
Please contact Kelly McLeod or Sam Newberry at 404-352-8211 or 800-486-8211 or suretygroupkelly@gmail.com
for all surety bond inquiries. Also, everything is available on this site.
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Types Of Contract Bonds, 45 below:
Special Contractor License for Maitland, Florida.
Any individual, partnership, corporation, or entity which engages in any activity with the object of gain, profit, benefit, or advantage in the city of Smyrna is considered to be engaged in business and must obtain a Business License or Business Registration Certificate for each location in Smyrna prior to engaging in these activities. This includes any activity, full or part-time, performed from a permanent, transient, residential or commercial location as well as any activity performed temporarily or on a transient basis in Smyrna. Activities include selling, soliciting or representing products or services, leasing or renting of real property, retail sales, wholesale activities, administrative office activities, manufacturing, providing services, consulting, etc.
All persons who engage in the business of construction within the City of Valdosta, the City of Hahira and unincorporated areas of Lowndes County must hold a current residential or commercial contractor's card, as well as a business license in order to be able to apply for a building permit. Residential contractor's cards only provide eligibility for a building permit for residential buildings. Commercial contractor's cards provide eligibility for both residential and commercial projects.
- It is a condition of this bond that the said Principal is to comply with all of the requirements and provisions of the building and other codes of Cobb County and to correct any code violations discovered during construction and for a period of one (1) year from the date of final inspection; excepting routine maintenance, abuse, modification, and normal wear and tear. A further condition of this obligation is that if the Principal fails to correct any such code violations in accordance with Cobb County’s Code Compliance Bond Ordinance, then the surety shall remedy the default within forty-five (45) days of notification by the county to do so. It is a further condition of these obligations that the Principal and Surety shall both be subject to suit, jointly and severally, by action by Cobb County, if in the discretion of the Chief Building Inspector of Cobb County it has been determined that said Principal has violated the building or other codes of Cobb County, or any provision thereof, for the purpose of requiring the necessary expenditure of funds to correct said violations on the part of said Principal, his Agents, or employees. Said Principal is hereby bound under said bond to faithfully perform all of his duties as such Principal and Contractor in compliance with the Building Code of Cobb County, and all other ordinances of Cobb County relating to buildings and the construction thereof.
- Bond Amount: Varies
- Underwriting:
- Completed Bond Application
- Excellent Credit
- Excellent Net Worth
- Financial Strength to Support Bond
DOD Bond
- An Explosives License Bond guarantees compliance with law governing the manufacture and handling of explosives. It also indemnifies against property damages, etc.
- Bond Amount: Varies
- Underwriting:
- Completed Bond Application
- Excellent Credit
- Excellent Net Worth
- Financial Strength to Cover Bond
- Also known as:
- Explosives Bonds, Explosives Bond, Explosives, Explosive, Explosives Surety Bonds, Explosives Surety Bond, Fireworks Surety Bonds, Fireworks Bonds, Blasting Bonds, Blasting Surety Bond, Blasting Contractor Bonds
Hernando or Hillsborough County Contractor's License
Right Way Bond For Lee County Florida
This bond, subject to its specific terms, guarantees that the principal will comply with the decree of court in the action, when a seizure of property warrant is issued.
Indemnifies city against claims for damages under a permit to open public streets.
Covers compliance with ordinance and regulations governing the performance of plumbing work.
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