The updated bond application process requires less paperwork and faster turnaround times. To start the application process, all contractors need to do is fill in their information, the type of bond they need, and the amount and Surety Bond Professionals will contact them directly.
For more information, visit https://www.suretybondprofessionals.com
The process for applying for construction bonds is now easier and more convenient. According to an article in Architectural Digest, contractors can increase their chances of winning the bid if they have secured a payment and performance bond. This protects all the stakeholders in the project – it assures the owner that the project will be completed up to the standard set by the contract and confirms payment for labor and materials used for the project.
Performance and payment bonds are often required at the same time, so most people think that they are the same. Surety Bond Professionals explains, however, that there are differences between the two. A performance bond guarantees the project will be completed on par with the contract. A payment bond, on the other hand, guarantees that all laborers, service providers, and suppliers will be paid by the contractor.
Depending on the credit score, financial history, and the contractor’s relationship with the bond agency and issuing company, the face value of the bond can cover anywhere from 50-100% of the value of the construction contract. Surety Bond Professionals states that most of the time, they can find companies that will issue 100% of the contract price, even to small contractors. The premiums range from 0.5% to 3% of the contract value.
“It was always stressful working with our previous surety. Because Surety Bond Professionals specialize in construction bonds, they have a comprehensive understanding of the market, which provides us with a high level of comfort. They can keep our bonding line open, so we can bid when we want to,” a satisfied customer said.
More information is available at https://www.suretybondprofessionals.com
Surety Bond Professionals, Inc.
205 Union Street
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Sahyadri Times journalist was involved in the writing and production of this article.