What are the Types of Surety bonds?

The three most common types of surety bonds are: Bid Bonds Performance Bonds Payment Bonds

Are Surety Bonds paid monthly?

No. You don't pay month-to-month for sureties. When you are quoted a price for a surety bond, you make a one-time payment.

How do I apply for a surety bond?

Applying for a surety bond, no matter the sort of bond, is to contact a surety agency. For instance, you can reach CSBA here to get started on obtaining your surety bond.

What is a payment bond?

A payment bond ensures that all of a contractor’s laborers, subcontractors, and suppliers are paid on a particular project.

Who requires payment bonds?

Payment bonds are required on almost all public projects. General contractors sometimes require them of their subcontractors, and occasionally private owners will require them.

Who pays for a payment bond?

The contractor, or principal, purchases the bond and pays for it.

Do Payment bonds expire?

Payment bonds expire after the project is completed and statutory timeframe have lapsed.

What is the difference between a surety bond and a payment bond?

A payment bond is a type of surety bond. The only real difference is the qualifying term, in this case, it's "payment" and only notes what sort of surety bond it is.

What does a performance bond cover?

The performance bond covers the owner of the project against losses if the contractor fails to deliver on the project within the contractual provisions.

How long does a performance bond last?

Since performance bonds guarantee the completion of the contract, they last until the project is finished along with any required warranty period included in the agreement.

When can you release a performance bond?

Usually, a performance bond is released when the project is completed, though some public projects stipulate that a contractor gives a warranty following completion that the performance bond covers.

What is the difference between a performance and a payment bond?

We have a detailed article that explains the differences here , but the short answer is that the performance bond secures the contractor's promise to complete a job within the terms and conditions outlined at the agreed price while the payment bond protects subcontractors, vendors, and laborers against nonpayment.

What is the difference between a bid bond and a performance bond?

Bid bonds are required when contractors bid a project and guarantees if they are low bidder, they will enter into the contract and provide any required performance and payment bonds. Performance bonds guarantee the actual performance of the work to be completed by the contractor according to the terms of the agreement. What happens to a bid bond after a contract is signed? The bid bond is replaced by a performance bond if the bid is accepted and the contractor enters into a contract with the owner or general contractor.

City of Anaheim

COMPLETED PROJECT

City of Anaheim

Project Scope and Details

Scope of Work:

Removal & Replacement of 11 Vertical Turbine Booster Pumps

Year Completed:

Completed in 2022

Contract Value:

$9,600,897

Location:

Anaheim, California

This is the Linda Vista Complex Pump Station Improvement Phase 2 Project for the City of Anaheim. The Linda Vista Complex is a critical water storage and pumping facility for Anaheim. This Complex is a stategic source for Anaheim’s water system. This project was for phase 2 improvements that consists of replacement of existing pumps with new up sized pumps and moters, replacing the existing electrical and controls, construction of a new building to house the new electrical controls, demoltion and removal of the abandoned on-site facilities, and other related site improvements. The job started in 2019 and came to a successful completion in 2022.

COMPLETED PROJECT

City of Anaheim

Project Scope and Details

Scope of Work:

Removal & Replacement of 11 Vertical Turbine Booster Pumps

Year Completed:

Completed in 2022

Contract Value:

$9,600,897

Location:

Anaheim, California

Contact a surety bond specialist today