What Is A Surety Bond And How It's Important?
Insurance Associates is an independent insurance agency providing surety bonding and insurance services for the construction industries in the region of DC, MD and VA.
Online, October 31, 2012 (Newswire.com) - A surely bond is a three party contract which is help in between the parties to ensure the entire construction process adhere to specified construction contract and the parties involve here are the contractor, the project owner and the surety bonds in MD. The guarantee is provided by the surety company that in case the contractor violet the contract, the company will compensate for it with the face amount of the bond. This may include either hiring another contractor to complete the project or paying the project owner a certain amount of cash back.
Generally, there are three facet of a surety bond which includes the bid bond, the performance bond and the payment bond. The bid bond deals at the time of placing the bid and rest two bonds are applicable only if you succeed and get awarded with the project. The performance bond thus used to guarantee the performance of the contractors. Last but not the least; the payment bond is used to ensure that you, as a contractor, will pay your subcontractors or other project supporters consistently. Every surety bonds in DC is based on these points only.
Now, there is a question why these bonds are so crucial? The first and foremost important requirement of these bonds is that in order to place the bid, you need the bid bond. The bonds are guarantee of a healthy relationship in between these three parties and ensure the completion of the project in time. The surety bond assures that a surety company has reviewed the basics of your construction business, and determined that you are qualified to bid for the job.
Getting a surety bond is not an easy task. The entire surety bonds in VA are assigned depending upon the credit history of the contractor. If you have good credit history, then only you will be able to acquire a project. Thus, the help of an experienced surety bond broker plays a significant role for any contractor to successfully placing a bid and winning the contract.
For More Information Visit:-
http://insassoc.com/client-services/surety-bonding/
Contact Us
21 Church St.
Suite 100
Rockville, MD 20850
Phone No.: 301.838.9400
Fax: 301.838.9095