What Type of Construction Bond Do You Need?

You can’t be an effective contractor without holding the right bonds. Yet, for many contractors, knowing which bond to get for which project, and for how much can add a whole new layer of complexity and confusion.

Here at Southwest Bond Services, we specialize in writing all types construction-related bonds. In this article, we’ll look at some of the more common types of construction bonds to help give you a better idea of how to get the right bond in your situation.

Contractor License Bond

This bond is necessary for anyone hoping to become a licensed contractor. Contractors looking to take their business to the next level should seriously consider becoming a licensed contractor. This adds a level of credibility by showing potential customers you stand behind your work.

When it comes to bidding on government projects, contractors will not even be considered for jobs unless they are licensed and bonded.

Payment and Performance Bonds

These bonds are often required when it comes to bidding on larger contracts. This type of construction bond serves as a guarantee to the project owner or developer that you will perform the agreed-upon work. Most project owners will not gamble with hiring a contractor without some kind of guarantee that the work will be performed.

Other Construction Bonds

When it comes to types of construction bonds, you’ll find there are several sub-categories that may be required, depending on the particular job. The best way to ensure you are going after the right bond is to consult with a bond writing agency like Southwest Bond Services.

Our qualified bond writers will help you navigate the process and get you the best rate possible for the bond you need to become licensed or win an individual contract.

How Bonding Helps Your Business

Bonding is one of the first things a project owner will take into account when deciding who will be awarded a bond. If you have your bonding ready to go, your bid will have a much greater chance of being accepted.

Bonding shows that you are serious about your work, professional and able to put in the work. Bonding makes you more competitive in your area of business and will help secure your reputation as a reliable and skilled contractor. This will be important in gaining a rapport with contract owners and getting business through referrals.

Want to Learn More?

If you want to learn more about securing any type of construction bond, get in touch with Southwest Bond Services today at 623-299-7471. We’ll get your bond written quickly and effectively.

What is a Title Bond?

A title bond is a certificate used to help verify ownership of a motor vehicle.

Isn’t that what the original title is for?

Ideally, yes. But there are plenty of occasions in which someone needs to buy a car that doesn’t have a title. For instance, if you buy a classic car you plan on restoring, or a used car that doesn’t have a title, you’ll need some way to verify that you own the car, so you can buy insurance and drive the car legally.

What is a Title bond Good For?

The real benefit of a bonded title is the ability to get you on the road legally. If you have a bonded title, you’ll be able to buy insurance and register a vehicle, even when there is no original title available. It can be frustrating to buy a used car, only to find that obtaining this type of title is a much more complex problem than anticipated.

How Do You Get a Title bond?

Securing a title bond can be tricky if you’re trying to do it yourself. It requires seeking out records from the MVD and tracking down certain types of documentation that could be tough to find.

How Can Someone Make the Process Easier?

At Southwest Bonds, we are experts in helping people secure title bonds. For a small fee and a deposit, we take care of all the complicated stuff. That means our representatives will write letters on your behalf, find the needed records and handle every aspect to make the process easier for you.

How Long Does It Take to Get a Bonded Title?

Sometimes, a bonded title might be finalized in a matter of hours. However, don’t be surprised if takes up to a few weeks for everything to go through properly. Sometimes, outside circumstances require more research or documentation.

How do You Get Started?

If you think you might need a bonded title, or want more information about what a title bond actually is, contact Southwest Bonds today. We’ll help you navigate the complicated process of securing the title. Our experts have extensive experience with this type of bond.

Once you schedule an appointment with us, make sure you bring in all the paperwork you can find associated with your vehicle. This will make it easier for us to make the process faster and smoother. We’ll inspect all your documents to determine whether or not a bonded title is the right choice for you.

Do you want to set up an appointment? Give us a call today at 623-974-6453. If you need to get the process handled quickly and efficiently, don’t hesitate to call the best! We’ll take care of you.

What is a Bid Bond?

Definition of Bid Bond

A bid bond is a type of surety bond used when companies bid on public construction projects. If you have a business and you want to bid on the government’s construction work, one of the requirements you will come across is a bid bond that will be included with your proposal. If you plan on regularly bidding on construction work by the government, the best course is to set up a surety line with a surety insurance agent.

What is a bid bond and why is it important?

A bid bond is important because it guarantees the project owner that you can abide by the bid contract and accomplish the job that is laid out in the contract. Having a bid bond is an assurance that you have the capability to implement and take on the project if you are selected in the bidding process.

Project owners are unsure if a contractor has the necessary resources to take on the project or if he is even financially stable. But with the bid bond, the project owner will feel assured to award a project to a contractor knowing he can collect compensation from the surety bond if the project fails.

What if the Construction Bond Obligation is Not Met?

If worse comes to worst and the construction bond obligation is not met, the contractor and the surety are liable for the bond. The contractor will encounter penalties for failure to comply with the bond’s obligations and any additional costs the owner incurs in selecting and awarding another contractor. The penal amount of a bid bond is 10 to 20 percent of the bid amount.

What is a Bid Bond in the case of exporters?

To collateralize bid bonds and win foreign projects, exporters put up assets. By doing this, they tie up assets that could be used to finance the accomplishment of the export contract itself. This impedes the ability of exporters to take on new deals and creates serious working capital constraints. Banks are also unwilling to accept assets that are export-related as collateral because it is possible that they will encounter difficulty in collecting inventory or accounts receivable outside of the United States jurisdiction.

How do Bid Bonds Work?

Project owners are secured when they request a bid bond. Having this keeps contractors from proposing frivolous bids since they are obligated to perform the job or pay the bond premiums. Companies that issue bonds perform comprehensive financial and credit reviews before agreeing to provide bonds for a company.

A number of contractors estimate what the job will cost to complete during bidding. In the form of a bid, they submit the price to the owner. Usually, this means that the bonding company will recompense the owner the difference between the lowest and next lowest bid. To recover these costs, the bonding company may sue the contractor but the possibility of a lawsuit would depend on the bond’s terms.

What is a Bid Bond – Requirements

All bidders are obliged to submit bid bonds on any federal project under the Miller Act. Several private firms have imitated this trend to protect themselves from risk during the bid procedure. In the construction industry, getting surety bond is essential if you want your company to become competitive.

In some localities, a surety bond is a prerequisite to obtain permits and licenses. Most importantly, majority of developers and project owners require a bond from you before you can even start bidding on their projects.

Are you in a hurry for a bond? South West Bond Services offers various types of bonds. We select the best insurance companies with the highest standards as surety providers. You can feel confident that your bonds are placed with surety companies known for their integrity, quality and honesty. For more information, contact us at 623-974-6453 or e-mail contact@bondwriter.com.

What is a notary bond?

To delve into what a notary bond is, we first need to define what a notary public is.

The Secretary of State’s office in a given state appoints an official to the position of notary public. Just like many public officials, the State requires the person to acquire a notary bond or surety bond prior to receiving their appointment. This bond ensures that in case the official violates the public trust by neglecting his or her duties, there are funds available to reimburse the state for its loss.

A notary public’s primary responsibility is to authenticate that the individual parties in a contract are who they claim to be. If the notary fails to properly confirm the identity of the parties, the state can possibly suffer a loss.

Here is one example:

Nate wants to purchase a car that is currently titled to a guy named Simon. Nate and Simon take the title to their local notary public to have their signatures notarized on the transfer of title. The notary asks both men for their driver’s licenses to confirm their identities. Nate shows his driver’s license, but Simon states that he left his ID at home.

Simon wants to get the deal done as soon as possible, to the notary public asks both Simon and Nate to sign the title. The notary then signs or notarizes both men’s signatures. Unfortunately, the person who claimed his name was Simon is actually Simon’s roommate named Tyler.

The real Simon had no intention of selling the car and is, in reality, away on vacation. Simon would also still have the title to his car had the notary refused to witness the transaction because Tyler never had any identification to show in the first place.

In this example, the public official violated the public trust by failing in their duty confirm the person’s true identity. Simon will need to file a claim against the State where the transaction occurred for the loss of his car since the State was negligent through its appointed representative.

Going back to the question on what is a notary bond, it is a guarantee of payment to the State for a penalty amount in case a loss happens. Surety companies or insurance carriers are usually the ones who provide notary bonds. The bond generally runs simultaneously with the term of the notary public’s commission.

If you are familiar with an auto insurance policy and you have an auto accident, the insurance company pays the claim and writes off your loss. You won’t need to reimburse the company for the damages. However, unlike an auto insurance policy, a notary bond is just a guarantee that the funds will be available in case a loss occurs. When the surety or insurance company pays the State up to the penalty amount of the bond, the loss paid is not simply written off. They will seek reimbursement from the bonded party, the notary.

If a notary bond protects the public, who protects the notary? To provide this protection, insurance coverage is available. It is called Notary Public Errors and Omissions. This may be purchased from insurance companies for a nominal fee.

To sum up everything on what is a notary bond, it is a document that is needed by notary applicants before they are commissioned. It is required by many states to protect the public trust.