Why Would I Need A Bond?
A reliable source of surety
credit is vital to contractors engaged in public
and private work. Contractors are increasingly being
asked to post a bond as assurance to project owners
and lenders that their work will be faithfully completed
on time and all bills promptly paid.
Surety bonds offer construction
project owners greater protection than letters of
credit. Surety bonds guarantee the owner of the project
that if the contractor defaults, the surety will
complete the contract. A letter of credit is issued
by a bank, usually for 10% of the total contract
amount, and callable by the owner upon demand. A
letter of credit does not guarantee sufficient funds
to complete the project; administer contract completion;
or assurance that rightful claims by subcontractors,
suppliers, and laborers will be paid. A surety bond
assures all these things and more for about 1-3%
of the contract amount.
If you're still
wondering whether you need a bond, or how a surety
bond can help your
business, please call us (303)