Performance Bonds are a legal agreement in which the surety guarantees that a contractor or principal will perform the obligations according to the established plans and specifications of the contract.
Performance Bonds provide security to the obligee that, should the contractor fail to perform their obligation under the contract, the surety will assume the responsibilities of the contract as per the terms of the contract and subject to the conditions on the bond.
Performance Bonds are required when a contractor is a successful bidder on a tender, a construction bond is often required to be submitted along with various documents prior to starting work. Performance Bonds are most often requested on public projects but can be requested by private owners as well. Performance Bonds are available for general contractors, sub-contractors along with many niche industries including suppliers, manufacturers and engineering companies.
To qualify for performance bonds, the surety will look to the 3 “C´s” of credit.
Ai Surety Bonding has programs available for performance bonds of all sizes. Whether you are a large experienced contractor or an emerging contractor, we can secure the bonding facility that is right for you.
Yes, Bid Bonds are also known as Tender Bonds. Bid Bonds are often required during the bidding process and provide a guarantee to the project owner that a contractor’s winning bid will meet the terms of a tendered contract. The bid bond serves to pre-qualify the principal, and provides a security guarantee to the project owner, assuring that the principal will fulfill the contract obligations.
When a contractor is the low bidder and awarded the contract, a performance bond and labour materials bond is required to follow.
Are you an emerging contractor looking for your first performance bond facility? Have you experienced issues qualifying for a traditional surety or have been deterred due to the high complexity or the vast amount of required paperwork?
Ai Surety Bonding offers solutions for emerging contractors. The emerging contractors’ program offers a quick and easy qualification process and provides needed flexibility to process into a standard surety facility.
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