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CONSTRUCTION BONDS (CONTRACT)

BID BONDS

Bid bonds are a financial guarantee by the surety to the obligee, usually the project owner, that the contractor will honor his bid price, enter into a contract and supply the required performance and payment ponds. The bid bond amount is usually 5 to 20% of the bid amount. If the contractor fails to honor his bid or can not furnish the performance or payment bonds, the surety is liable for the difference between the first and second bidder up to the face amount of the bond. (Download Form Adobe_PDF_file_icon_32x32 or Apply Now)

PERFORMANCE & PAYMENT

The performance bond guarantees the performance of the contractor, that they will complete the contract at the price stated as per the plans and specifications. If the contractor defaults the surety must step in and complete the project or pay to have it completed up to the bond limits. Most performance bonds are written at 100% of the contract amount and increase with each change order. The cost of the bonds is based on a percentage of the contract amount. (Download Form Adobe_PDF_file_icon_32x32 or Apply Now)

MAINTENANCE

The maintenance (or warrantee) bond is a financial guarantee that the contractor will maintain a project for a specified time after completion. Usually the bond, when required, is written at the same time as the performance and payment pond. The bond is usually written as a smaller percentage of the contract amount, typically 10%. (Download Form Adobe_PDF_file_icon_32x32 or Apply Now)

SITE IMPROVEMENT

This bond guarantees that a developer will properly install improvements affecting public property associated with commercial property belonging to the obligee, in accordance with applicable building codes. (Download Form Adobe_PDF_file_icon_32x32 or Apply Now)

SUBDIVISION

This bond guarantees that a developer will properly improve public property associated with a commercial subdivision belonging to the obligee, in accordance with applicable building codes. (Download Form Adobe_PDF_file_icon_32x32 or Apply Now)

CONSTRUCTION BONDS (LICENSE & PERMIT)

HOME IMPROVEMENT/TRADE CONTRACTOR

This bond guarantees performance of a contract for construction or repair work and compliance with obligee’s laws and regulations. (Download Form Adobe_PDF_file_icon_32x32 or Apply Now)

STREET OBSTRUCTION/PERMIT

The City of New York requires a bond when filing a permit for excavation/street opening. Please refer to the NYC-Department of Transportation for details. (Download Form Adobe_PDF_file_icon_32x32 or Apply Now)