Surety
Bonds
Today’s construction industry is more competitive
than ever, and more contractors are interested in
projects that require them to provide surety bonds
guaranteeing their performance of the contract.
Simply stated, a surety bond is a three-party
agreement under which one party, the Surety, guarantees to another, the owner or
obligee, that a third
party, the contractor or Principal, will perform a contract in accordance with contract documents. In the case of a
subcontract, the general contractor then becomes the obligee and the subcontractor is the Principal.
There are three types of Contract Surety Bonds:
1. Bid Bond A bid bond provides financial assurance that the bid
has been submitted in good faith and that the contactor intends to enter
into the contact at the price bid and provide the required performance and payment bonds.
2. Performance Bond
A performance bond protects the obligee from
financial loss should the contractor fail to perform the contract in accordance with the terms and conditions of the
contract documents.
3. Payment Bond
A payment bond guarantees that the contactor will
pay certain subcontractors, material suppliers, and all of the general
contractor’s labor associated with the contract.
In addition to contract surety bonds, L. Calvin
Jones & Co. also provides a host of miscellaneous surety bonds including, but not necessarily limited
to, financial guarantee bonds, license and permit bonds, maintenance bonds, supply bonds, etc.
Also included in L. Calvin Jones’ field of expertise
is the Fidelity Bond. A fidelity bond is a bond which will indemnify an insured for loss caused by a
dishonest or fraudulent act of an employee covered under the bond. There are numerous types of fidelity
bonds. To name a few, L. Calvin Jones can provide Bankers Blanket Bonds for financial institutions, union bonds which guarantee wages and fringe benefits, bonds on mercantile establishments which cover dishonesty, disappearance and
destruction, commercial blanket bonds, bonds for non-profit organizations, blanket position bonds, pension and 401(k) bonds, labor organization bonds,
computer systems coverage, etc.
Some of the above mentioned bonds can be included
into the client’s commercial insurance package at a substantial premium savings.
In order to determine your company's eligibility for
a meaningful bonding program, we will ask you for the following information:
Last 3 years'
company financial statements. Percentage of Completion statements
are also desirable. Statements should be CPA-prepared.
Personal
Financial Statements of stockholders and spouses, concurrent with
last company statement. (Personal Financial Statement Form -
click here to download)
Completed
Contractors Questionnaire (click
here to download)
Completed
Work In Process
Form (click
here to download)
Separate
resumes of key people in your organization (supervisors, estimators,
etc.)
Bank Line of
Credit Letter
List of
Contractors' Equipment (not including office equipment).
Bid Bond Request Form (click
here to download)