Contractors Guarantee Bond
License, Permit, Miscellaneous Guarantee & Performance Bonds
CONTRACTORS GUARANTEE BOND OVERVIEW:
The Contractor Guarantee Bond is the smart, safe, secure and inexpensive way for homeowners to protect the money advanced to general contractors for home improvements.
Our bond guarantees the total amount of money the homeowner advances to the contractor in accordance with the project agreement.
Why Chance It?: Some contractors demand large cash down-payment and then disappear without completing the work. Inhabitable homes place loans at risk.
Peace of Mind: Your dream of beautifying, expanding and/or remodeling your home. Our Bond provides financial peace-of-mind that your construction investment is protected.
Homeowner Trust: Our Bond protects your hard earned money to improve your home with the strength, integrity and care of a AA+ rated company with over 2 Billion in asset coverage.
Contractors, Architects & Engineers: Our Contractor Guarantee Bond (CGB), for home remodeling or repair, can save up to an estimated 200-400% on the cost of a regular Surety bond.
Submissions under $100,000.00: One Page Application
2% Rate of Higher Based on Credit
Must Include: Contract
Must Include: Personal Financial Statements
1-2 Business Day Turnaround Time
Submissions over $100,000.00
Rates Start at 2% of Higher Based on Credit, Experience, etc.
Must Include: Contract
Must Include: Personal Financial Statements
Up to 1-week Turnaround Time on New Submissions
Document Downloads
Application: Call underwriter for appropriate application at 1-818-715-7133
Frequently Asked Questions About Our Contractors’ Guarantee Bond
Would you like to know more about the contractors’ guarantee bond? In the section below, we answer some of the most asked questions about these bonds.
What is a contractors' guarantee bond?
A contractor guarantee bond is a kind of surety bond that a contractor will provide to a project owner to guarantee that their roles and responsibilities will be fulfilled as stated in the contract. It is designed to protect the project owner, also known as the obligee, financially in the event that the service provider fails to carry out the work or breaks the contract’s provisions.
If the company does not meet the obligations of the agreement, contractor bonds personally guarantee that the obligee will receive due compensation. Fundamentally, it promises clients that they will receive the promised services or monetary reimbursement if the contractor fails to perform. This arrangement encourages accountability and helps to build confidence in a business.
Is a contractors' guarantee and construction bond the same thing?
Yes, the terms “contractor guarantee bond” and “construction bond” usually refer to the same form of surety bond used in the construction sector.
Both phrases are sometimes used interchangeably when referring to bonds that safeguard project owners from contractor default or inability to meet the terms of a contract. These bonds reassure clients that the task at hand will be done as agreed upon or that they will be compensated if the service provider fails to comply.
What do these surety bonds typically cover?
A number of aspects are typically covered in the bond. This includes the following:
- Adhering to the provision of the contract
- Completing the work as promised
What can I expect to pay for this type of bond?
The amount will depend on various factors, such as the size and scope of the project and the contractor’s financial standing. To learn more, it’s best to get in touch with us.
Why should I choose S. Philips Surety & Insurance Services Inc. as my surety company?
Finding the right insurance company is paramount, as this ensures a smooth overall experience for you and your client. With so many surety companies on the market, though, it’s often hard to tell who to trust. Here are a few reasons to choose us:
- With over four decades of experience, we are confident that we can help you strengthen your relationships with clients.
- Our services are offered nationwide.
- We offer a fuss-free sign-up process with efficient processing.
- Our experience spans a number of different industries and sectors, so you can turn to us with the full assurance that we know what we are doing.
- We provide the best contractors’ surety bond guarantee program on the market.
Can a contractor guarantee bond be used for government projects?
Yes, contractors’ guarantee bonds can be used on government projects. They assure government organizations that service providers will carry out their contractual commitments, follow project specifications, and satisfy performance and completion requirements.
What other types of bonds might I need for construction projects?
The truth is that other bonds may also be necessary to ensure the completion of a construction project. Payment and performance bonds are two common types that are also used. Bid and maintenance bonds are two additional types of construction bonds. Below is an overview of these types of bonds:
- Payment bonds. A payment bond is commonly used to ensure that a contractor will pay suppliers and subcontractors. If these companies do not receive payment, they can file a payment bond claim to recover compensation from the relevant surety company.
- Performance bonds. This bond is used to ensure that the promised quality of work is delivered. A performance bond protects project owners and offers recompense if the contractor fails to uphold their end of the bargain.
- Bid bonds. A bid bond is used to assure a contractor that the project owner will enter into a contract with them if they are awarded a bid.
- Maintenance bonds. This type of surety bond is used after work has been done. A maintenance bond is a form of surety bond that insures against deficiencies in workmanship or materials for a set period after the project is completed.
To learn more about these bonds, please contact S. Philips Surety & Insurance Services Inc., and we will gladly assist.
If you haven’t found the answers you were looking for, please reach out to us, and we will gladly assist.
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