Check out the complete piece at The COVID-19 Potential Impact on Contract Surety. Certainly this is one of the first of MANY that will consider the ramifications of the current pandemic-driven crisis, and timely it is. COVID-19 is likely NOT the last serious threat that the construction industry will face in the coming decade.

Contract Surety bonds guarantee obligations related to specific contracts, both construction and commercial services. A bid bond Is a bond which provides financial assurance that the bid has been submitted in good faith, that a contractor will enter into a contract at the amount proposed, and will provide the appropriate performance and payment bonds if so required. These bonds are used by obligees (project owners) to pre-qualify contractors that submit proposals. A performance bond guarantees performance of the terms of a contract. These bonds frequently incorporate payment bonds (labor and materials) as part of the contract surety bonding package. A payment bond guarantees the payment of subcontractors, laborers, and materials suppliers associated with a project. Payment bonds are issued for the protection of those parties that supply labor or materials and to eliminate the likelihood that they will file mechanic’s liens against the project property. A maintenance bond guarantees upkeep (maintenance) of the completed project for a specified period of time after completion. These bonds provide protection for defective workmanship and materials.National surety bond leader, Surety One, Inc. is a specialist in providing for the bonding needs of general and specialty contractors. We offer contractor surety bonds, i.e., performance bonds to all applicants in EVERY state. Call (800) 373-2804 or email [email protected] to discuss your particular needs.

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