Surety Bonding – Assurance For Your Project

2007-05-15 06:10:46

( Financial )



In constructing homes or buildings, there should be an assurance that the project will be finished on time and without problems. Building owners must have a legal document to guarantee that the contractor will not withdraw from the project.

WHAT IS SURETY BONDING?

Surety bonding is a legal agreement between the owner, the contractor and the surety so that the contractor will conform to all the contracts signed between the contractor and the owner of the project.

If the contractor, for any reason, did not finish the project on time, the surety will guarantee that the contractor will finish the project.

WHAT IS INCLUDED IN A SURETY BOND?

There are things that maybe included in a surety bonding agreement that will protect both the contractor and the project owner.

A bid agreement will ensure that a bidder will pay on time, depending on the terms of payment agreed upon with the contractor.

The payment agreement will make sure that the contractor will pay all the expenses for the construction of the home or building such as labor, materials and power tools.

Performance bonds the contractor to perform all obligations included in the contract.

There are also auxiliary parts of a surety bond that may help the project owner to ensure that the project will be done promptly.

SURETY BOND SERVICES

To ensure the success of your project, have a notary surety bond.

The rates for a surety bond is dependent on how big the project is and how long will it take to finish the project. Also, the state where the project is being done affects the amount of bond.

When applying for a bond, you have to provide information such as: contractor’s license number, contractor’s license class, business tax ID, social security number, name that will appear on bond, name of the person who will sign the bond to name a few.


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