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What You Should Know
You’re an electrical, plumbing, or irrigation contractor, and you want to bid on projects to grow your company and enhance its reputation. Whether you’re hoping to secure a public works project or contract with a project management company for commercial jobs, you’ll likely need a surety bond, both to bid on the job and, later, to start the work. Most Electrical Plumbing or Irrigation bonds start at $100.00 for a $5,000 amount.
Turn to TMD Surety Bonds to find out what surety bonds you’ll need and to get the best rate quotes. TMD’s professional agents enjoy working with contractors to help them navigate the bond process. They’re savvy enough to secure the necessary bonds quickly and efficiently. TMD Surety Bonds has already helped many companies get the bonds they need to grow their businesses. Those clients secured them at excellent rates from industry leaders in the surety bond business.
Surety Bonds Offer Protection
Many types of surety bonds exist, but all of them involve three parties. The principal in your case is you, the party that has to purchase the bond. An obligee is the party that requires you to purchase the bond, for example, a project management company or municipality. The third party is the agent that brokers or arranges the bond.
Surety bonds guarantee that the work you perform is completed according to the schedule and specifications that you and the obligee have agreed upon. The bond provides payment protection for the obligee against contract shortcomings.
It also lets you build up a type of credit with the surety bond company against any claims that the obligee might make. Unfortunately, it does not relieve you of the obligation to provide exactly what the obligee pays for, but it signals your willingness and ability to tackle the job properly.
The right agent is the one that gets you the right bond at the right rate.
You May Need a Contractor Bond
Surety bonds for construction projects are known as contractor bonds or construction bonds. For work with project management companies, bonds consist of three components:
- Bid bond: This assures the management company that your project bid is accurate, complete, and realistic and that you can post a performance bond if you get the work.
- Performance Bond: This is the assurance that you’ll do the work on schedule and according to all project specs.
- Payment Bond: A bond that assures that the subcontractors and suppliers you use for the project will receive payment for their work and material.
You Might Need Additional Surety Bonds
Public works jobs sometimes require additional bonds. You may need a warranty bond as assurance that your work remains intact for a specific time after its completion. A supply bond may be required as assurance that the quality of the material you use is the same as you promised. And a permit bond or _license bond _may be necessary to assure project compliance with municipal codes and regulations.
Contact TMD Surety Bonds for Information and the Best Rates
The amount you pay for your surety bonds is based on many factors, including the size of the job and the creditworthiness of your company.
Premiums for performance bonds can be as low as 1 to 3 percent of the contract total, and bid bonds are often free except for a small administrative fee. Small companies, or those struggling financially, can expect to pay 4 to 10 percent of the total project costs for a performance bond. What you don’t pay with TMD Surety Bonds are hidden costs.
Talk with one of our agents to get a better understand the surety bond process and the calculation of premiums. Our experienced professionals pride themselves on their knowledge and level of customer service.
You can also simply click on our link to start your application process now.