Surety Bonds 101 The Basics of Bonding. What is Surety Bonding? Surety ObligeePrincipal.

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Presentation transcript:

Surety Bonds 101 The Basics of Bonding

What is Surety Bonding? Surety ObligeePrincipal

Types of Surety Bonds Bid Bond Performance Bond Payment Bond

Types of Surety Bonds Bid Bond Performance Bond Payment Bond

Types of Surety Bonds Bid Bond Performance Bond Payment Bond

Capacity Financial Strength Company History Organization Continuation Plans References Prequalification Work In progress

Capacity Financial Strength Company History Organization Continuation Plans References Prequalification Work In progress

Capacity Financial Strength Company History Organization Continuation Plans References Prequalification Work In progress

Capacity Financial Strength Company History Organization Continuation Plans References Prequalification Work In progress

Capacity Financial Strength Company History Organization Continuation Plans References Prequalification Work In progress

Capacity Financial Strength Company History Organization Continuation Plans References Prequalification Work In progress

Capacity Financial Strength Company History Organization Continuation Plans References Prequalification Work In progress

Capacity Financial Strength Company History Organization Continuation Plans References Prequalification Work In progress

Surety Company Checklist Good character Experience matching contract requirements Financial strength Excellent credit history Banking relationship Line of credit Necessary equipment

Benefits of Bonds Financial Security Construction Assurance

Functions of Bonds No liens Smooth transition from construction to permanent financing Provide support to contractor Project completion Surety Bonds

Cost of Surety Bonds Bid BondNo charge Performance Bond ½ - 2% of contract price Payment Bond Price included with performance bond

Example Surety Bond Rates Project Amount Approx. Bond Premium $1 Million$7,700 – $13,500 $5 Million$33,200 – $47,250 $10 Million$56,950 – $81,000 $20 Million$101,950 – $146,000 * Premiums may vary depending on size, type & contractors bonding capacity.

For More Information Surety Information Office 1828 L St. NW, Suite 720 Washington, DC | Fax |