Vermont contractors take on significant responsibility when they begin projects, and customers can sustain financial losses if contractors fail to complete projects. Contract bonds may provide assurance that customers will be compensated if a contractor fails to deliver as promised.
Contract bonds are specialized surety bonds that normally provide financial compensation if a contractor doesn’t follow through with a project. Several different contract bonds are available.
Vermont contractors who work on larger projects may be required to purchase contractor bonds. Commercial construction companies, large residential developers, and roadwork companies might need them.
These bonds can also be purchased by tradespeople, general contractors, home builders, contractors who remove hazardous materials and utility construction companies.
Contractor bonds can be specialized according to the type of company that purchases them.
For instance, general construction, utility construction, road construction/paving, bridge construction and environmental construction bonds are all slightly different. So too are subdivision bonds, supply performance bonds and sub-trade bonds.
Contractor surety bonds vary significantly in cost. The type of bond, type of project, limits chosen and other factors all impact cost. Even with varying costs, however, bonds are generally reasonable to purchase.
In many cases, contractors must submit business financial information so that underwriters can also consider it. The requested information can include current bank account statements, recent bank account statements, profit & loss statements for two years, and recent tax returns.
Contractors who can provide a history of successfully completing other projects sometimes can also have their past work taken into account, which might help.
In order to find out exactly how much the contractor surety bonds that a specific project requires will be, businesses can compare rates with an independent insurance agent who knows these bonds well. Comparing rates is generally wise to do before bidding on a project or providing an estimate, as businesses can then build the cost of the bonds into their bids/estimates.
For help purchasing contract bonds that are needed for projects in Vermont, contact the independent insurance agents of Paige & Campbell Insurance. Our agents are well-versed in bonds and can show you options from several different insurance companies. They have the expertise necessary to help you secure what bonds your business needs at competitive rates.
Barre
P.O. Box 469
297 North Main Street
Barre, VT 05641
(802) 476-6631
Bradford
P.O. Box 392
25 North Main Street
Bradford, VT
(802) 222-5222
Waitsfield
5197 Main Street, Suite 3
Waitsfield, VT 05673
(802) 496-3118
Mike Bancroft is simply an amazing agent. When my business got burglarized, I was so upset and didn't know what to do. He was very prompt in calling me back and he put my mind at ease. He made me feel so much better and handled all of the paperwork immediately. His customer service is top notch and I highly recommend him!