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Your Bond Department is Open

License & Permit Bonds • • Contract Bonds
Motor Vehicle Dealer • • Release of Lien
Appeal Bonds • • Mortgage Broker
Wage & Fringe Benefit • • Standard Markets
Right-of-way Bonds • • Bid, Performance, and Payment Bonds
Visit our website for more information, or call (248) 349-6227
With over 20 years of experience in the bonding industry, we can handle virtually all of your
construction and miscellaneous bonding needs:

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STOP Hunting for Surety Bond Support


This is the perfect time of year, BEFORE Tax Season, to discuss or review bonding lines and possibilities.  It’s also where Construction Bonding Specialists, LLC can help.

  • If a contractor is looking to grow and will be doing more bonded work a strategic meeting NOW can significantly help them in the future.
  • Taxes will be coming due and the way that a contractor approaches their End of Year can directly affect how a Surety will look at them.
  • Now is the time to talk about bonding even with a contractor that doesn’t do a lot of bonded work.  Demystifying the process now will help them be more effective later.



Listed below are just a few of the Miscellaneous Bonds that we can process for you: 

  • ICC Broker Bonds
  • Non-Vessel Operator Common Carrier (NVOCC) Bonds
  • Federal Maritime Commission (FMC) Bonds
  • DMEPOS Bonds (there is a new requirement for Dentists)
  • Release of Lien Bonds
  • Customs Bonds


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September Newsletter

Fall is certainly knocking on our door and with that there is a push to wrap up jobs.  Once all of the current jobs are finished oftentimes Municipalities and Schools find “surplus” monies that need to be spent prior to the years end.   Let us help make sure you’re ready to capitalize on these situations.

Final Consents of Surety

Its September, school is back in session and jobs for the schools are wrapping up.  Oftentimes a Final Consent of Surety is required by the Obligee.  If you are in need of a Final Consent of Surety here is the process to secure one:

  1. Forward the name and contact information of the person that Is overseeing the job.
  2. A Status Report is sent to this individual to have it completed.
  3. Once this Status Report is completed and returned to us, it will be reviewed for approval to issue the Final Consent.
  4. If there have been change orders the surety will bill for the additional exposure!  Always be aware of this and be sure to include your bonding cost when quoting change orders.
  5. Once the Surety approves it the Final Consent it will be issued.

DON’T FORGET:  Keep an eye out for additional opportunities that may arise and require a Bid Bond or Performance and Payment Bond.

Submissions Email

Please help us process your requests quicker by utilizing the following email for them:


This email will help assure that your request will receive the same, if not faster, attention that you have always received.  The email is monitored all day, every business day.  

Please make a note in your records and help us take great care of all of your bonding needs.

“Bonds Are All We Do!”

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Getting Bonds for Your Business

Construction is booming and with this increase, there has also been a increase in bonds as well. Keeping up with the growth means that it is vital to secured bonds quickly. With a little planning and having the right team in place to handle your bonding needs can make a huge difference.  What exactly is needed for a successful bonding team?  An agent and an accountant that fully understand the surety bonding marketplace; and your knowledge of the contract language on simple contracts (and possibly an attorney for the more complex contracts).  With the right people in place Bonds become a valuable piece of your business that help you secure the future growth you desire. 

What is a Surety Bond?

Just a quick brush up on what a surety bond is and why  Surety Bonds are more of a financial or credit tool that speaks to the financial strength of your company, as well as the experience in the industry and overall ability to complete a particular construction project. A bond is a third-party agreement, the bonding company is bound to the provisions in the contract making them, in essence, your silent partner. In order for them to become your partner, they will require you to sign an indemnity agreement, something an insurance policy doesn’t require.  This is the way a Surety company protects themselves should there be a loss.  The amount of information required for a surety bond depends greatly on the size of the job or program desired, the credit profile of the company and its owners. 

Why is the right agent important? 

Most Agents are very familiar with standard programs that are quick and easy. These programs have set rates and restrictions on how large the job can be.   However, having an agent that is well versed in the unique niche that is Surety Bonds can help you find a program more tailored to your needs.  As a company grows moving away from a quick program can provide larger single and aggregate limits, as well as rates that reflect the strength of your company.    For those contractors that have had a difficult time obtaining bonding in the past.  The right agent will be invaluable knowing where to get you started and know when to move you to another company as your company becomes more appealing to surety’s.  The right Agent understands what each surety’s appetite is, this is helpful as it saves time by approaching the right company first.  Additionally, they know when a business has developed and maybe even outgrown a surety and where to go next. To keep a good relationship with your bonding company so that bonds are easily accessible when needed there are things that a bonding agent will do.  They will meet with you prior to year-end and then again at the beginning of the new year. These meetings are key to keep your bonding line healthy and able to be utilized.  Maybe even to increase it if that is what you want to do. 

Keeping your best interest in mind, a bonding agent needs to be as responsive as you are on your job site.  Keep in mind the right agent in only as good as the information provided to them by you and your accountant.  If you are willing to provide information and listen to them, they can help you secure a bond program for your company for now and the future.

What role does an Accountant play in securing surety bonds?

Understanding how to structure a statement so that the Surety company sees your company’s assets in the best light is crucial.  Oftentimes this is the most painful part of the bonding process as surety companies need to see profits.  Profits to many accountants, and let’s face it all of us, mean more taxes.   A bond savy accountant understands and can work with the contractor to position you in the best light for the size of bonded jobs that you want to pursue.  Striking a balance between showing the profit a Surety Company needs to see and the amount of taxes you have to pay. 

The only other member of this team that we haven’t discussed is you the contractor.  Your knowledge and expertise of the projects you are looking at.  No one likes surprises in the middle of a job, including surety companies.

With the right team in place pursuing bonded work can become less intimidating.  It takes a little planning.  That is why, if you talk to your team working together now will help you be prepared for whatever bids may be coming up.  Get your team in place and grow your business.

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Surety Bond Use In Everyday Life

Surety bonds are a part of everyday life.  Many individuals don’t understand the concept of bonds and how they are used to protect parties entering into a contract with one another.  In basic terms a surety bonds are a binding legal agreement that offer financial guarantees to the parties involved in a multitude of contracts.  Surety bonds state that one party, known as the surety is obligated to a second party, the obligee , in case of a default by the third party, the principal.

Various categories of surety bonds:

Contract surety bonds offer both financial security and construction assurance on projects both building and construction.  Contract surety bonds assure the project owner that the contractor will meet the requirements set forth in the contract.  If the contractor fails the project owner the surety company will cover the contract requirements so that the project owner is not at risk of loss.  The surety offers a guarantee that the contractor will perform the job stated while meeting their financial obligations to subcontractors, material providers and employees.

Bid bonds ensure that a contractor submits a bid that is intended to meet the needs of the contract.  The price of the bid that is submitted covers the financial obligations of performing the work as stated in the contract while covering the expenses on their end.

Performance bonds ensure the project owner is covered from loss if the contractor fails to perform the contract as stated and agreed upon.

Payment bonds are in place to make sure that the contractor is liable for the expenses to subcontractors, laborers and materials related to the contract that was entered into.

Maintenance bonds protect project owners against defects in materials or workmanship for a specific, agreed upon period of time.

Subdivision bonds ensure cities, counties and states that the principal, contractor of a subdivision, will financially cover and construct improvements within the sub like streets, sidewalks, curbs, street gutters, and more to make sure the sub meets stated requirements.

License and permit bonds are obtained to allow certain businesses to do business. An example of these bonds include: construction bonds, motor vehicle bonds, employment agency bonds and more.

Fiduciary bonds secure that administrators, executors, guardians and such will perform duties in line with court stated orders.

Different bonds are used in special situations to guarantee that contracts or duties are performed as contracted.  Many people confuse insurance and bond however they are completely different.  Insurance is used to protect individuals or businesses from themselves or others where as bonds are used to make sure expectations are met by others.  Both protect against loss of finances.

Construction Bonding Specialists, LLC are dedicated Surety Bond Professionals that are aligned with several Treasury Listed and AMBest Rated Surety markets which allows them to assist with virtually all Bid, Performance and Payment, Financial Guarantee and Supply bond needs.  Find out more information at

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Types of Contract Bond In Construction

Contract Bond Types

Contractor License Bond: Purchasing a contractor license bond is almost always a requirement of contractors before they are licensed to work on construction projects.  Depending on the laws within the state, county, city or even subdivision a contractor license bond could be required.  Without the necessary contractor license bond in place the contractors often cannot obtain the license that is needed to provide construction services.

If work is performed and a contractor does not have a contractor license bond or it has expired they will feel the impact in the form of penalties, fines, licenses being revoked and even legal action. Contractors are wise not to perform any construction work until they have their contract license bond in place.  The expense of not having this in place could sink a contractor before they even have the chance to get their business started.

Bid Bond: Construction projects do not all require bid bonds.  They are often asked for by project owners when a contractor is bidding out a project.  Financial proposals are submitted to project owners to provide a cost basis for the project.  Before a contract is entered the bid and contract terms need to be agreed upon.  Many project owners will not award the construction contract to contractors that fail to have a bid bond accompanying the contract.

A bid bond guarantees a contractor is entering into a contract for the amount of the original bid if the contract is awarded to them.  Surety bonds ensure contracts are filled to the terms of the contract that is entered into.  If a contract is awarded the surety bid bond guarantees the contractor will fulfill the contract at the amount originally billed.

Payment Bond: Any contractor seeking contracts that exceed one hundred thousand dollars are required under the Federal Miller Act to provide project owners with both a payment and performance bond. This includes any publicly funded projects when they include alterations or repairs to buildings that cost over one hundred thousand dollars as well.

A payment bond is a bond that ensures a contractor will cover the cost of materials and the payroll of sub-contractors.  The payment bond keeps the project owner from being liable from any costs if the contractor cannot pay.  The payment bond puts the ultimate liability on the surety company issuing the payment bond.

Performance Bond: Performance bonds are often paired with payment bonds as both protect project owners from loss sustained by contractors failing to meet their obligations.  The performance bond offers a certainty to project owners that the project will be completed at the level of performance that is stated within the contract the contractor and the project owner agree upon.

Contract bonds are a type of surety bond that contractors are issued by surety companies to guarantee project owners are covered from any inadequacy on the contractor’s part.  Each type of surety has criteria that must be met before a contractor’s eligibility can be determined for construction bonds.  Criteria such as the contractor’s skill level, resources, ability to perform and historical criteria have been met. Surety companies analyze the applicants, contractors, overall financial status, work history, standings in financing and credit report before the surety bonds can be issued.

Construction Bonding Specialists, LLC are dedicated Surety Bond Professionals that are aligned with several Treasury Listed and AMBest Rated Surety markets which allows them to assist with virtually all Bid, Performance and Payment, Financial Guarantee and Supply bond needs.  Find out more information at

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