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 projects 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 - See Menu at left)
• Completed Contractors Questionnaire (Select Form at left)
• Separate resumes of key people in your organization (supervisors, estimators, etc.)
• Bank Line of Credit Letter
• List of Contractors' Equipment (not including office equipment).