Construction, Manufacturing and Supply Bonds

The bid bond typically represents a percentage of the bid amount. It serves as financial assurance that the bid has been submitted sincerely and that, if awarded the contract, the contractor will adhere to the price, terms, and conditions specified in the RFP/ITB. A bid bond shows the project owner or general contractor that the bidder can provide performance, payment, and maintenance bonds if awarded the project. Providing a bid bond is preferable to a certified check, as it confirms that the surety carrier will supply the necessary bonds if the contract is won.

The bond includes all work specified in the contract documents, which the contractor must fulfill. The specific liability of the contractor and the surety is determined by the contract obligations, the requirements of the plans and specifications, and any relevant statutes. For a manufacturer or supplier, the bond guarantees delivery of the product as per the contract terms.

Unique Surety and Insurance Services, LLC can secure bond amounts of up to $350 million per project for qualified contractors. The team at Unique Surety collaborates with the contractor, construction accountant, and attorney, if necessary, to organize and provide the required documentation for the application process and connect you with the appropriate surety carrier. In addition to assisting with the completion of the bond checklist, we will review your work in progress, financial statements, and prior work history. We will review the projected total bond requirements for the next twelve months with you. This approach allows you to secure an aggregate amount sanctioned by a surety provider, guaranteeing adequate capacity for the upcoming year.

When a bond is issued by the manufacturer or supplier/broker, it carries an important financial promise. This type of bond helps ensure that all parties involved in the supply chain are protected. Specifically, it guarantees payment to all suppliers who contributed to securing or delivering the product. Without this bond, unpaid suppliers could pose legal or financial risks to the project. It adds a layer of trust and accountability to the transaction. Ultimately, the bond reinforces the supplier’s or broker’s commitment to fulfilling their obligations.

While a one-year term is standard, the time frame can extend over several years. The duration often depends on the type of project or obligation. Longer terms may be required for complex or ongoing responsibilities. In some cases, renewals or extensions are built into the agreement. It’s important to review the specific terms outlined in the bond or contract. This helps ensure all parties understand the timeline and obligations involved.