Read the latest news regarding Commercial, License, Permit, Contract, Court and Fidelity Surety Bonds, and how upcoming changes will affect your business. Check out our glossary page for more information on Surety Bond terminology.
Key Takeaways Performance and payment bonds typically cost 1% to 3% of the contract value for well-qualified contractors, though flat rates for credit-challenged applicants can push that closer to 2% or higher, plus an additional fee if SBA backing is involved. The Miller Act’s operative threshold for federal construction contracts is $150,000, not the $100,000 … Continue reading “Performance and Payment Bonds: Costs, Uses, and How to Calculate Them”
Read MoreWhen applying for your Florida Motor Vehicle Dealer Bonds, you’ll need to first decide which type of Florida Motor Vehicle Dealer Bonds you’ll need.
Read MoreYou’ve probably seen it dozens of times, whether on a contractor’s truck door, in a vendor profile, or buried in a licensing requirement you didn’t expect. “Licensed, bonded, and insured.” Three words that get used together constantly but rarely get explained separately. For most people, “bonded” is the one that doesn’t quite land. To ensure … Continue reading “What Does It Mean to Be “Bonded”?”
Read MoreWhen a project owner hands you a contract and asks for proof of financial security, two options usually come up: post a performance and payment bond, or provide an irrevocable letter of credit. On the surface, the letter of credit can seem like the more straightforward path. Look closer, though, and the picture changes. For … Continue reading “Why Posting a Performance and Payment Bond Is Better Than an Irrevocable Letter of Credit”
Read MoreContractors navigating their first bonded project often assume a surety bond works something like a loan, with a bonding company fronting money they’ll pay back over time. It’s an understandable assumption. Both involve financial commitments, both require an application and approval process, and both can determine whether a contractor gets the job. The similarity ends … Continue reading “Is a Surety Bond a Loan? How Bonding and Financing Actually Work”
Read MoreYou land a bid on the biggest project your company has ever pursued. The contract requires a performance bond, so you contact a surety agency, start the application, and submit the financials you have on hand. A week later, the underwriter comes back with questions, requests documentation you don’t have, and the process stalls. The … Continue reading “Why CPA-Prepared Financials Matter in Construction Bonding”
Read MoreJoint ventures and strategic partnerships are powerful tools for contractors looking to expand their capabilities, bid on larger projects, or enter new markets. But when it comes to bonding, these arrangements can introduce complexity. Before they’ll bond a joint venture, surety companies need to understand how the partnership works, who’s responsible for what, and how … Continue reading “Bonding for Joint Ventures and Partnerships”
Read MoreSurety bonds exist to protect project owners, government agencies, suppliers, and other stakeholders from financial loss if a contractor fails to meet their obligations. There’s a catch, though, as you’re ultimately on the hook to make it right if a claim is filed against your bond. Due to the financial implications of bond claims, understanding … Continue reading “What Happens When a Claim Is Filed Against Your Bond and What to Do If You’re Facing a Bond Claim: Contractor’s Guide”
Read MoreNearly 15% of Americans have poor credit, and contractors are no exception. A low credit score doesn’t have to stop you from getting bonded, but it does mean approaching the process with the right information and the right partners. If you plan to apply for a surety bond, learn more about how to get bonded … Continue reading “Can You Get Bonded with Bad Credit? Options for Contractors”
Read MoreWhen a construction project wraps up, most contractors are focused on closing out paperwork, collecting final payments, and moving on to the next job. But for many public and private projects, there’s still one more layer of protection in place: the maintenance bond. If you’ve been asked to provide a maintenance bond or you’re a … Continue reading “Maintenance Bonds: What Happens After the Project Ends?”
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