Category Archives: Contract Bonds

What Is a Contract Bond? [Definition & Most Common Types]

contract bond

Most people have heard a cautionary tale about contracted work. Apprehensions toward contracted work exist in both the personal and business worlds. You may have even had a bad experience with a contractor yourself at some point. Websites like Angie’s List (now Angi) became popular to help people safely identify professional contractors with proven track […]

California Contractors Bond Update for 2023

Contractor working in California with a surety bond

Effective January 1, 2023, contractor license bonds, qualifying individual bonds, and disciplinary bonds for all licensed contractors in the State of California will increase to $25,000. This announcement was first publicized in 2021 as a result of Senate Bill 607. The contractor license bond will increase from $15,000 to $25,000, and qualifying individual bonds will […]

Should a Subcontractor Obtain a Bond Program?

Bonded subcontractor shaking hands with a general contractor onsite

Several variables determine whether a construction project ends up being successful. One of the most important factors is the subcontractor’s performance. There’s no secret to that statement, which is why we’re seeing the number of subcontractors requiring bonds increase. Bonds Can Increase a Subcontractor’s Chances for Success Whether it’s the project owner, general contractor, bank, […]

Do You Need Surety Bonds for Private Construction Jobs?

Contractor with a surety bond working with a homeowner on a private job

You already know that you need surety bonds to work on public construction projects. The Miller Act made sure of that – requiring contractors planning to work on any contract exceeding $100,000 to post a payment and performance bond. From bidding on a project to accepting and completing it to the quality and specifications outlined […]

Contract Bonds for Commercial Jobs: A Beginner’s Guide to Contract Surety

construction bonds for contractors

Commercial bonds and contract bonds are often required for certain businesses to operate in a state or get hired for jobs. This article will discuss the differences between the two and go into more detail about various types of contract bonds. Key Takeaways The government often requires commercial bonds for an organization to secure a […]

Surety Bond Qualification for Bid, Performance, & Payment Bonds

Contactor qualifying for a surety bond

“How can I qualify for a bid, performance, or payment bond?” The answer to this question will depend on the size of your project. The larger the job, the more information you will need to provide for surety bond qualification and to obtain your bond. Qualifying for Bonds on Small Jobs If the bond is […]

Contract Bond Underwriting 101: What Do Underwriters Need?

Contract bond agreement for a new project

A surety bond is a financial guarantee. For a surety company to accept the risk of providing this financial guarantee, it must undergo an underwriting process to determine the risk level of the principal who needs the contract bond. Below we define commonly requested underwriting information and address why a surety company may ask for […]