How it started: “Hi Steve, I have a strange scenario I hope you can help me with.”
Our agent had a performance bond client established with a surety and the SBA program. They needed a P&P bond for a municipal project and the surety demanded payment in advance. The client could not comply.
The award and notice to proceed were issued and the contractor commenced with the work – but the obligee forgot about the bond, until now. The contract is completed but the client cannot receive their final payment until they file a maintenance bond. Due to weak credit, the surety is refusing to issue unless they add additional indemnitors. The job is finished: DUH!
We gathered a file and asked for a status inquiry form from the obligee (to confirm the degree of completion and obligee’s satisfaction with the project.) The contractor passed along the form, but the project manager refused to complete it, stating he “never saw one of these before.” DUH #2!
We made contact with the township engineer and after a friendly conversation, were able to verify everything was OK and they promptly completed the form for our records. We evaluated the bonding requirements and determined that the Performance bond form contained an 18 month maintenance clause (no separate maintenance bond), so the P&P bond was still needed. FIA Surety issued it, and with no SBA support or additional indemnity required: TA-DAH!
The agent is happy. The contractor is happy. The township has a completed project with maintenance coverage. We bonded a job that was completed and accepted. Now was that so hard?
FIA Surety is First Indemnity of America Insurance Company, your go-to carrier for Site, Subdivision, Bid and Performance bonds. Call 856-304-7348
Making TA-DAH moments for our clients since 1979.
FIA Surety / First Indemnity of America Insurance Company, Morris Plains, NJ
We are currently licensed in: NJ, PA, DE, MD, VA, NC, SC, WV, TN, FL, GA, AL, OK, TX