Construction - Contract Bond
Contract Bonds mostly referred to as construction bonds, Contract Bonds guarantee a contractor’s performance. Such bonds ensure proper performance by the contractor, adhering to the terms of the contract. In case of failure to perform appropriately, the surety bonding company is liable to pay to the insured or the bond owner’s clients, within the agreed limits of the surety bond. This limit however is normally equal to the amount of the appropriated cost of construction. The surety bonding company then reclaims the bond amount from the contractor. We underwrite this bond based on credit, experience and references and approval of this contract bond program are usually within 24- 48 hours depending on the amount of the bond.
ABC Bonding of Texas represent multi national construction surety companies so we can get you the best possible rates.
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Types of Contract - Construction Bonds:
This bond requires the contractor to submit the lowest bid on a particular project. On refusal by the contractor to undertake the project, the developer is entitled to the difference between lowest and the next lowest bid. The Bid Bond ensures that the contractor undertakes projects seriously and fulfills his obligations completely.
The Payment Bond enforces an obligation upon the contractor to pay the dues owed to the labor and for the materials that are used in the construction of a project. In case the dues are not paid, the owner can be confronted by sub contractors, and ends up paying the dues a number of times.
This bond ensures quality of performance by a party against another party, according to the terms agreed in the contract.
This bond guarantees that materials comply with the contract document and are thus delivered accordingly.
Site Improvement Bond
These bonds are not meant for existing structures, and thereby guarantee remarkable improvements in the site.
This bond guarantees the supply of all necessary material required for the successful completion of the project put on contract.
Sub Division Bond
This bond is much like the Site improvement bond. It guarantees the existing properties that mandatory improvements will be made to them by the city or the state.
Most Recent Contract Bond Purchases:
· $38 Million Supply Bond
· $1.8 Million Pluming Contract Bond
· $1.2 Million General Construction Bond
· $438 K General Construction Bond
· $365 K General Contract Bond
· $198 K Contract Bond
· And many More!!!!