Correct identification is important when browsing the forest for edibles – maybe even crucial!
What about in bonding? Not being able to identify a bond may not be life threatening, but it won’t improve your career health either.
Here’s one that can be challenging, but we’ll give you the keys!
Contract / Performance & Payment Bond vs. Site or Subdivision Bond
Identify a Site or Subdivision Bond:
- The obligee / party requiring the bond is always the local municipality
- There is never a written construction contract between the municipality and the bond applicant
- The bond applicant is not being paid to perform the work guaranteed by the bond. The applicant is self-funding the project (may have obtained a construction loan.)
- The subject of the bond is always site work such as installing water and sewer lines, stormwater management, roads and sidewalks, landscaping, traffic & safety, signage, parks, etc.
- “Vertical construction,” such as residential structures, are never the subject of the bond.
- There is often no specifiied completion timetable
- Bond amount can be reduced as work proceeds
- Typically, bond does not cover claims by suppliers of labor or materials
With this expertise you can guide your client appropriately and select a responsive surety carrier – one that has aggressively pursued this business for more than 46 years: FIA Surety.
Brilliant!
Take your chances, or make the smart move –
call the EXPERTS! It’s that easy…
Oh wait, there’s more: Check out our accredited Free CE courses, Zoom webinars you can attend from home or office. Our webinars are wildly popular, free and there are no exams. 3 credits each. Click for info and to register.
FIA Surety / First Indemnity of America Ins. Co., a Palomar Company
2740 Rt. 10 West, Suite 205
Morris Plains, NJ 07950
Office: 973-402-1200
A Carrier Providing Contract, Site and Subdivision Bonds up to $10,000,000!