The Skeen Insurance Agency works with businesses for all their bonding needs. A bond protects the guarantor against losses resulting from the principal’s failure to meet the obligation. These bonds assure owners that their projects will be completed promptly and properly.
A Bid Bond, also known as a Proposal Bond, is necessary when construction contracts are put up for bids. The successful bidder is required to furnish the required Performance or Payment Bonds in order to begin construction.
A Performance Bond is generally required in these circumstances:
- Federal construction projects under The Miller Act
- Public work performed for state entities when the contract exceeds $100,000
- Private contract work where an owner requests a Performance Bond