Bid, Performance, and Payment Bonds:
Perfomance bonds for construction have historically been time consuming and difficult to obtain for most contractors. T.S. Holt Company has worked with our surety companies to streamline this process and provide a responsive, timely program that better enables our contractors to budget their time and money for pending jobs.
Most projects with values under $100,000 can be qualified within 24 hours. For larger jobs, contractors should typically budget 5 to 7 working days, once we receive all necessary information, in order to establish an initial bonding line. Once this bonding line is in place, subsequent bid bonds can be secured in 24 hours. If the bid is accepted, the final performance and payment bond is delivered within 48 hours.
Since the surety is providing a guarantee of the contractor's timely construction performance and supplier payment, the following information is typically requested for underwriting:
a) Business financial statement. A CPA compiled statement is sufficient for
projects under $150K. Year end statements for the last 3 years with year to
date is preferred.
b) Personal financial statement for all owners with 10% interest or greater.
c) Contractor's experience and information sheet.
d) Current work on hand schedule
e) Copy of the contract which discusses the bond requirement and describes
the scope of the work to be completed, including scheduling requirements
f) Premium payment at bond delivery.
The premiums for performance bonds vary, based on the financial status of the contractor, experience with the type of job and total size of the project. However, one should expect the premium to range between 1.0% and 3.5% of the total contract amount.
If you are interested in our performance bond program, please contact us for a packet of information that will assist you in compiling the necessary information.