Contract Bonding
Surety or Contract Bonding is a specialized field related to the construction industry. We at Paige & Campbell, Inc. have been dealing with bonding for more than 60 years and have the experience to help contractors establish and maintain a bonding program.
What is Surety? A surety bond is a three-party agreement whereby the surety assures the project owner (obligee) that the contractor (principal) will perform a contract in accordance with the contract documents.
There are three basic kinds of Surety bonds:
- The bid bond assures that the bid is submitted in good faith and that the contractor will enter into the contract at the price bid and provide the required performance and payment bonds.
- The performance bond protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.
- The payment bond assures that the contractor will pay specified subcontractors, laborers, and materials suppliers associated with the project.
If you are interested in learning more about Bonding and Surety, give us a call and we would be happy to discuss what is required to establish a bond program. Some of the documents related to bonding can be found in the forms library at right.
