We write contract, bid, and performance bonds.
The Bond Agency writes Bid Bonds and Performance Bonds for contractors of all sizes, large and small. We have authority to issue bonds on contracts up to $1,000,000 which makes us very competitive for small contractors, start-up contractors, and contractors that may not qualify for the standard bond market. We have markets for premier contractors up to $700,000,000 per contract.
About Net Worth Expenses
What are Bid Bonds?
A Bid Bond is given to a Government Agency or General Contractor, at the time of a bid which guarantees that if the Contractor (Principal) is awarded the contract the Principal will enter into the contract and post the required Performance and Payment Bonds. Bid bonds are typically required only as a percentage of the Principals bid, usually 10%.
What are Performance Bonds?
The Performance Bond follows the Bid Bond if the Contractor (Principal) is awarded a contract. The Performance Bond guarantees that the Contractor will complete the contract in accordance with the terms, conditions and specifications. The Performance Bond is required as a condition of being awarded the contract.
What are Payment Bonds?
A Payment Bond is usually issued along with the Performance Bond. The Payment Bond guarantees that material suppliers and sub-contractors will be paid. Though Payment Bonds are typically separate documents they are issued for no extra charge, when required.
Additional information such as Business Financial Statements or Personal Financial Statements (PDF) and a Work on Hand Report (PDF) may be required if aggregate bonding exceeds $400,000. We will let you know after we receive your application whether any additional documents like those above are required.)
Under $750k
Most contract bonds under $750,000 can be written based on the Owner's credit and length of time in business. The process is quick and easy, and requires a one page application.
Over $750k
While larger contracts require more documentation, we have access to the most flexible markets and will work to ensure that you are placed with an Insurance Company who's values align with your goals.
