The primary goal of any business owner is to ensure that the operations of their company runs smoothly and efficiently on a daily basis. But there are many instances where the performance of the business may require extra attention. It is at these times that it may be necessary to assure the client that the company they have hired is performing as was promised.
In construction and contract work, as well as in many other business models, Orlando surety bonds help to ensure contract completion in the event of contractor default. A project owner (called an obligee) seeks a contractor (called a principal) to fulfill a contract. The contractor then needs to obtain a surety bond from a surety company. If the contractor defaults, the surety company is obligated to find another contractor to complete the contract or compensate the project owner for any financial loss incurred.
There are four main types of surety bonds
There are different bonds available for every phase of work being committed to by a contractor. The four primary bonds are:
- Bid bonds, which ensure the bidder on a contract will enter into the contract and furnish the required payment and performance bonds if awarded the contract
- Payment bonds, which ensure suppliers and sub-contractors are paid for work performed under the contract
- Performance bonds, which ensure that the contract will be completed in accordance with any and all terms and conditions, and
- Ancillary bonds, which ensure requirements integral to the contract, but not directly performance related, are also performed
An agency with extensive knowledge and years of experience that specializes in combating diverse risk exposures can assist by providing unique product and services options. Other bonds that may be of interest to businesses requiring bonds includes the following:
- Contractor Bonds
- Sub-Division Bonds
- Court Bonds
- Conservator Bonds
- Fidelity Bonds, and
- Liquor Licenses
Since there are many types of Orlando surety bonds and products, it’s important to discuss options with a licensed, professional bond agent that can meet those unique business needs of this burgeoning industry, and can provide a high-degree of customer care that will ensure any and all considerations.