A surety bond is a contract between three parties, (1) Principal (that’s you/your company), (2) Surety (the bonding company) and (3) Obligee (person or entity requiring the bond). The surety provides a financial guarantee to the obligee that the principal will perform the project according to the terms of the contract.
There are literally hundreds of different bond types. A few of our most requested bonds are:
Business Services Bonds that can protect your clients if you employ individuals that work in your clients homes or businesses.
Custom Bonds where the primary purpose is to guarantee the payment of important duties and taxes and compliance with governing regulations on the entry of merchandise into the US from foreign shipping locations.
License and Permit Bonds protect consumers by guaranteeing the business will abide by rules and regulations enforced by local, state and federal government and are required in certain industries
Bid Bonds that provides a guarantee to the obligee the principal is capable of doing the job, will take the job if they are the low bidder or the obligee can make a claim against the bond for the difference in cost between the low bid and the next highest bidder.
Performance & Payment Bonds are generally written together. The performance bond guarantees to the obligee that the principal will complete the job according to the terms of the contract and the performance bond guarantees payment for goods and services used by the principal in completing the work. Federally funded projects in excess of $100,000 are required to be bonded under the Federal Miller Act.
Cecil W. Powell & Company provides these bonds and many others. We have been providing contract bonding services to our clients for more than 80 years.
Bonding is crucial for contractors and the contract bonding relationship is an exceptionally intimate relationship, you will provide a huge amount of both personal and financial information to your bonding company. The agent or broker relationship with the surety companies is incredibly important as well. At Cecil W. Powell & Company we take pride in maintaining excellent long-term relationships with many of the most trusted surety companies in the business.
The bonding process can be time-consuming and very tedious as well as frustrating for contractors which is why you need an agent or broker that is experienced, honest, and has the skill set to be a trusted advisor and help you get the bonds you need to grow your business. At Cecil W. Powell & Company we have the experience, honesty and skill set to help you navigate the entire process. We partner with you to help you improve and continually develop increased bonding capacity to support planning, expanded work programs and the overall growth of your company. We work with you to help manage your company’s risk. Contact us at Cecil W. Powell & Company for a consultation today.