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Get Your Bid, Performance, or Payment Bond Now!

Bid Bonds

Bid Bond is a prequalification indicating that the contractor is bondable for the performance and payment bond should they be read low or chosen by an Owner/GC/CM that they will enter into the contract and provide a Performance and Payment Bond.  

Performance Bonds

Performance Bonds offer assurance that the bonded contractor will perform according to all contract documents.

Payment Bonds

Payment Bonds offers an assurance that the bonded contractor pays for all materials and labor associated with the documents related to the contract.

While each of these bonds have specific criteria that has to be met to secure them, Construction Bonding Specialists, LLC knows what is needed up front to help expedite the process.  With our years of experience we know the best way to approach a surety to present a solid opportunity.  This is because we specialize in assisting contractors when any of these types of bonds are needed.  We can handle everything from simple/small bonds to more complex/larger bonds.  We’ve virtually seen it all.

The specialists at Construction Bonding Specialists, LLC can assist you with your application(s) today. Call or visit our website to learn more information.

BONDS ARE ALL WE DO!

For more information about our bonds visit our website or call 248-349-6227

Construction Bonding Specialists, LLC works with new and experienced contractors to find and solidify the most appropriate bond needed. We are a distinct surety-bond-only agency with decades of bonding experience. We’ll work with you to discover all the bonding solutions for any case, ranging from ordinary to challenging.

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Contractor License Bonds

Contractor License or Permit Bond: A contract license or permit bond involves three different parties: the obligee, the principal, and the surety. It is a promise that the surety makes to pay the obligee in case the principal fails to fulfill their statutory requirements. These bonds are typically required by cities, states, and municipalities.

Contractor License & Permit Bonds are required by individual municipalities throughout Michigan and around the country in order for construction work to be permitted. State licensing boards, and local municipalities all routinely require contractors to file a bond of one type or another to guarantee specific work done.

WHAT IS A CONTRACTOR LICENSE BOND & PERMIT?

To obtain licensure or a permit, contractors need to get a license or permit bond from a surety bond company. The three parties involved are the Contractor (principal), the City, State or Municipality (obligee), and the Insurance Carrier (surety). The contractor license & permit bond not only benefits the contractor by allowing them to perform work within that jurisdiction; it helps others who could be involved or affected by unethical and costly business decisions. The bond ensures that the principal contractor will provide services in accordance with the Statute or Ordinance’s laws of the city and state or municipality, such as adhering to building codes.  

If the contractor fails to fulfill the terms of the Statute or Ordinance within the jurisdiction the bond would pay damages caused/ sought by the affected party through the Obligee (City, State or Municipality). However, the surety will not simply absorb the loss. If a claim is made against the bond, the principal must reimburse the surety for any money they paid out when settling it. To get rates for a Contractor Bond, contact us today!

BONDS ARE ALL WE DO!

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What is an Appeal Bond?

An appeal bond is required of a petitioner to set aside a judgment or execution from which the other party may be made whole if the action is unsuccessful. These bonds help protect the court from frivolous appeals that cost the court time and money. Appeals are always posted by the losing party in a court case.

Appeal bonds are regularly required of defendants and occasionally plaintiffs’ party to a civil suit to secure a higher court review. They are supplied by the appellant (plaintiff), who is appealing the court’s judgment and is usually in the amount of the original ruling (though it could be more). Appeal bonds are also known as supersedeas bonds or safety net bonds.

Appeal bonds…

  • Serve as a safety net bond, which protects the court
  • Allow the court to stay judgments while cases are on appeal
  • Guarantee the defendant’s original judgment against them will be paid if they lose appeal
  • Are required by the Federal Rule of Appellate Procedure 7
  • Must be paid to the court or a third party to demonstrate good faith

The amount of money required for the bond is often the actual judgment plus interest and is held while the appeal is debated. A paid assessment will protect the prevailing party if the losing party goes bankrupt during the appeal process. The appeal bond is also used to limit frivolous attempts in an appeal, as the appellant still has to pay the judgment upfront in the form of a bond, and might end up paying more ultimately, due to interest, fees, attorneys, etc. 

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At Construction Bonding Specialists, we work with new and experienced contractors to find the most satisfactory bond solutions. As a distinct surety-bond-only agency with decades of bonding experience, we work to discover bond solutions for all types of bond cases ranging from ordinary to challenging. Contact us or call 248-349-6227 today. 

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What is a Subdivision Bond?

A subdivision bond is typically purchased by a landowner or developer when upgrades and/or changes are required by a local government authority. It guarantees the work is completed according to the terms set forth. In the agreement with the city, township, or municipality.

Examples of Subdivision Bonds

  • Street improvements (grading, paving, curbs, gutters)
  • Sidewalks
  • Storm drains
  • Water mains
  • Sewers
  • Landscape
  • Erosion control
  • Subdivision monumentation

These bonds provide financial assurance that the landowner will find and complete improvements through parcel land development.

Key parties involved in subdivision bonds:

  • Principal: the landowner/developer
  • Obligee: the city or municipality
  • Surety: the underwriter of the subdivision bond

A percentage of the engineer’s estimate for improvement costs are used to determine the subdivision bond amount. Subdivision bonds renew annually until a point at which the public entity requiring the bonds provides a release of the bond obligation to the surety. 

At Construction Bonding Specialists, we work with new and experienced contractors to find the most satisfactory bond solutions. As a distinct surety-bond-only agency with decades of bonding experience, we work to discover bond solutions for all types of bond cases ranging from ordinary to challenging. Contact us or call 248-349-6227 today.

Written by the digital marketing staff at Creative Programs & Systems: www.cpsmi.com.

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