Surety bonds provide financial security and construction assurance on building and construction projects.
Surety bonds are third party agreements between a Principal (contractor), an Oblige (project owner) and a Surety (bonding company).
The agreement assures to the Oblige (owner) that project will get built per plans and specifications, that costs to perform will get paid, and that certain subcontractors and suppliers will be paid.
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How to Obtain Surety Bonds
An Insure Forward professional surety agent will guide you through the bonding process.
The agent may need the following information from the contractor:
- An organizational chart of key employees
- Resumés of the contractor and key employees
- Business plan of type of work, growth, territory, profits
- List of largest completed jobs and gross profit earned
- Subcontractor and supplier references
- Bank letter indicating bank line of credit
- Recommendation from owners, architects, and engineers
CPA-reviewed financial statements including job schedules are vital information to include.