Construction Surety Bonds For Contractors, Subcontractors and Subdivision Developers
Performance Bonds Information
Performance bonds are a written agreement under which one party, called the surety, obligates itself to a second party, called the obligee, to answer for the default of a third party, called the principal. Suretyship is an obligation to pay the debts of, or answer for, the default of another. In the form of bid, performance, and payment bonds contract suretyship provides specific benefits to project owners, contractors, laborers, subcontractors, and suppliers. Most surety contract bonds are written on public works construction projects, which includes federal, state and local projects.
Performance bonds are used to guarantee that a contractor will abide by the specifications of a construction contract. A Contractor surety bonds assure a project owner that a contractor will perform the work and pay specified subcontractors, laborers, and material suppliers.
Performance bonds are commonly used in the construction and development of real property, where an owner or investor may require the developer to assure that contractors or project managers procure such bonds in order to guarantee that the value of the work will not be lost in the case of an unfortunate event -- Wikipedia
Usually construction projects requiring bid bonds also require payment bonds and performance bond when the project is awarded to the winning bid. Payment and performance bonds are insurance or security that the project will be completed by the winning bidder.
Construction contrators can benefit greatly from a prequalified corporate surety. Even if a public entity will accept alternate security for the bid process, the contractor awarded the job is almost always required to post performance and payment bonds from a corporate surety. Surety credit often enhances a contractor's competitive position in private work because the contractor can offer project owners and lenders the assurance that its capacity to perform has been carefully reviewed.
The main types of Performance bonds are: Bid Bonds, Performance Bonds and Payment Bonds
Bid Bonds provide financial assurance that the contractor submitting a bid, if awarded the construction contract, will enter into a formal contract with the owner and will post performance and payment bonds. Most public works, and many private ones, will require bid bonds on the date of the bid.
Performance bonds guarantee that the contractor will fulfill all terms and conditions of the construction contract.
Payment bonds guarantee that the contractor will pay labor and material bills associated with the contract. Laborers, subcontractors, and suppliers receive financial assurance with a payment bond.
Performance Bonds and Payment Bonds (aka Final Bonds) typically need to be issued within 10 days of the award date or prior to any contract payment.
Usually included together performance and payment bonds are two separate bonds required for both public and private construction projects as well as subdivision development projects. Performance and payment bonds are sometimes referred to as a P&P Bond.
Contractor performance bonds are surety bonds issued by a bonding company or bank to guarantee satisfactory completion of a project by a contractor or a subcontractor. Performance bonds safeguard the owner, contractor and the people associated with a construction project, protecting the owner in case the contractor fails to perform and complete the contractual obligations. Payment bonds are a guarantee that the contractor will pay all laborers, material suppliers and contractors per contractual obligations. A surety bond provided by White Lion Bonding & Insurance Services is designed to guarantee a principal’s integrity, honesty, performance, and financial responsibility, as well as maintain compliance with a law or contract.
We specialize in maximizing the bonding capacity for contractors regardless of their trade or specialty and despite how big or small their bond needs might be.
Construction Surety Bonds Information
- Bid bonds guarantee that a contractor will enter into a contract, if awarded, and furnish such contract bonds as required by the terms of the contract
- Performance bonds guarantee faithful performance of the terms of a contract of construction or furnishing of supplies
- Payment bonds guarantee payment for labor and materials used in the work the contractor is obligated to perform under the terms of a contract
- Maintenance bonds guarantee against loss because of defective workmanship or materials used in the completion of a construction project
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The White Lion Performance Bonds Services Difference
- We have appointments with over 15 surety bond carriers
- We’ll negotiate and match each contractor with the most suitable bonding company
- Our focus is to ensure your short and long term goals are met
- We are a team of construction and bond experts available to assist you throughout the entire process
- Our bonds are A.M. Best A-Rated
- Quick and Free quotes – within 24 hours
- We provide the most competitive rates in the industry
- Ability to place bonds in all 50 states
- Power of Attorney for all our surety companies
- In House Underwriting - We issue bonds directly from our office
Use White Lion Bonding & Insurance Services For Your Performance Bonds Needs
As a full-service surety bond broker specializing in Construction surety bonds White Lion Bonding & Insurance Services can provide fast and efficient Performance bonds services in all 50 states. We work with construction contractors, subcontractors and subdivision developers to help them get the best suited bonds for the projects they are bidding and currently working on.
We provide all types of surety bonds for large and small contractors working all types of construction projects including;
general building, commercial building, residential, home and multi-tract home, heavy construction, highways and roads, bridges, dams, railroad, industrial and more.
The contractor and subcontractor construction bonds underwriting broker business for bid, performance and payment bonds on public works and private construction projects presents a number of challenges. Securing the ideal bond for a specific project at the best price is important to the success and bottom line profits for contractors and subcontractors.
White Lion offers the knowledge and expertise to source the best surety bond carrier to provide the Performance bonds that is best suited for each project. We will select the right Performance bonds and find the best surety bond carrier all while streamlining the process and providing fast, efficient service.
Appointments with numerous established surety bond carriers enables White Lion to negotiate and match each contractor with the best suitable bonding company. This means White Lion will find the right bonds for their clients and gives their clients access to the best surety bond rates on the market.
Established relationships with numerous bond carriers has enabled White Lion to effectively offer surety bond services in all 50 states.
We help small to large-scale contractors get the best prices and terms on the bonds they need to get to work. Sub-contractor bonds are available for all trades and crafts including: electricians, carpenters, masons, plumbers, painters, and landscapers.
Dedicated to providing personalized customer service and industry expertise to all clients, White Lion has been providing quality surety bonding services since 2008. With a customer first mindset, we are focused on understanding the client's needs and goals inside and out.
Offering a complete portfolio of Construction surety bonds, we provide clients with complete, fast, effective services and the best rates available on subdivision developer contractor, private project and public works construction bonds. Construction contractor bonds available include; bid, payment, performance, subcontractor, payment and maintenance bonds.
White Lion founders have developed unique and simplified bond analysis and processing programs to streamline the process of getting clients the best prices on the right bonds for their project.
General engineering contractors constructing locks and dams, power plants, large fridges, sewage, water treatment plants and similar projects for public and private owners can take advantage of the fast, streamlined, efficient bond broker services provided by White Lion Bonding & Insurance Services.
Appointments with numerous established surety bond carriers enables White Lion Bonding to negotiate and match all construction contractor, subcontractor and subdivision developer clients with the best suitable bond underwriting company. This means that White Lion Bonding will find the right bonds for their clients by them giving access to the best surety bond companies available.
Call (949) 258-9800
For Free Performance Bonds Quotes and Consultation
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