There are literally thousands of types of bonds. With different requirements and regulations for each state, we recognize that bonds can be a confusing area.
Contract, commercial, surety; no matter your needs, we at CIG are here to provide you with the resources, services, and solutions you deserve. Our experienced staff strives to make your experience in the bonds area feel simple, easy, and just what you need.
Here are just some of the services we offer in the constantly changing field of Surety bonds:
- Analysis of your company’s Financial position and ability to obtain surety credit
- Subcontractor and vendor prequalifaction assistance
- Potential Surety Company assessment
- Contract Review
- Surety Program advocate
- Resolve surety issues
- Execution of bonds in a timely fashion
Surety bonds are a great tool to protect against risk. They are written agreements that guarantee performance of a contract. They include a vast array of bonds such as court judicial, public official, license and permit and guarantees of financial performance.
Surety bonds can basically be used any time an individual or group is expected to do something, and some further assurance of their compliance is needed.
There are three parties in a Surety Bond:
The Principal - the primary party who will be performing the contractual obligation
The Obligee - the party who is the recipient of the obligation
The Surety - who ensures that the principal's obligations will be performed
Within the realm of surety bonds are Contract Bonds which are a guarantee of a specific contract.
The most common types include:
- Bid - assures that the bid has been submitted in good faith and that the Principal will enter into the contract at the price bid and provide the required performance and payment bonds.
- Performance - protects the Obligee from financial loss should the Principal fail to perform the contract.
- Payment bonds - assures that the Principal will pay specified subcontractors, laborers, material suppliers etc.
Commercial, license, or permit bonds are usually required by law and are a guarantee from a Surety to a government and its Obligee that the Principal will adhere to the provisions of the applicable codes and laws that apply to particular activities.
Fidelity bonds cover losses arising from employee dishonesty.
