Commercial Contract Surety Bonds are very similar to the well known Contractor Surety Bonds which are widely used in the construction industry. However, a commercial contract surety bond is typically required of a company performing a service contract as opposed to a typical "bricks and sticks" style construction project. These types of surety bonds can include all or some of the following:
Commercial Contract Bid Bonds
Commercial Contract Performance Bonds
Commercial Contract Payment Bonds
Commercial Contract Supply Bonds
The aforementioned bonds generally seek to ensure the completion of a service contract and that the first two tiers of subcontractors and equipment suppliers are paid. Currently, we are seeing health care providers, information technology or IT companies, and many other non-construction companies in need of commercial contract surety bonds.
What is the current market for a Commercial Contract Surety Bond?
Commercial Contract Surety Bonds are widely written by multiple surety bond markets. The respective minimum and maximum bond amounts for Commercial Performance and Payment Surety Bonds depend on the amount of the contract in which your company intends to enter. If you seek a Commercial Contract Bid Bond, the percentage of the bid price needed is typically found in the bid documents. Get your commercial contract surety bonds today by filling out the application below!
How do I apply for a Commercial Contract Surety Bond?