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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Checklist To Evaluate Contractors

Looking for a professional contractor for commercial or residential construction projects can be all consuming.  There are steps that need to be followed to ensure that the contractor you are hiring can meet the performance expectations while staying on time and within budget.  In order to evaluate the contractor’s ability to accomplish this you must take time to look into their background.

Looking into a contractor’s background can consist of several things including reference checks, viewing portfolios and analyzing online reviews.

Reference Checks:  As you narrow down contractors to work with it is imperative to ask to speak to both recent commercial and residential clients.  These clients will revile what you can expect when working with the contractor.  This will give you an idea of where you should align your expectations should you choose to work with them.

Portfolio Viewing:  There are many ways in which a contractor can show off their portfolio.  A great way contractors can visually show who they are is through an online forum such as an up-to-date website rich in photos of projects.  Websites that offer images of projects from start to finish can often be the most helpful to individuals looking to hire a contractor.  If you want a closer look at projects completed by the contractor ask them to view a job they are currently working on or have recently finished.

Online Review Analysis: Getting to know a company is made simpler with internet review forums.  Read reviews from individuals reviewing contractors that have worked on projects similar to the one that you are looking to hire them from.  People are completely honest, maybe even too much so when it comes to online reviews.  It is a great place to get to know a contractor through their client’s eyes.

Although evaluating a remodeler’s background offers a great deal of insight to the hiring process it doesn’t offer a complete picture.  When selecting a contractor for construction endeavors it is critical to the success of the project to confirm that all individuals, including sub-contractors, are licensed, insured and bonded.

It is essential that any contractor that is hired for any residential or commercial project not only be licensed and insured but also bonded.  A variety of construction bonds are offered to ensure that all aspects of a project are covered.  Below is a list of bonds that secure the project owners interest in a project from a contractors default.

Contractor License Bond:  A contract license bond includes three different parties including the obligee, the principal and the surety.  This type of bond is secured as a promise that the surety (bonding company) makes to pay the obligee (project owner) if the principal (contractor) is unable to fulfill the contract as stated.

Bid Bond:  When a contractor is bidding on a project a bid bond is required especially on government projects.  A bid bond is used to inform the owner of the project that the contractor can secure a bond if they are the lowest bidder.  It states that the bid amount covers the financial liabilities of the project.  It ensures that contractors don’t low ball a bid in order to get the job only then to ask the project owner for additional funds as the project progresses.

Performance Bond:  A performance bond is used to guarantee that a project is completed.  It ensures that the job is performed as stated within the contract and that it is completed within the time frame that is expected.

Payment Bond: Usually a payment bond is issued in conjunction with a performance bond.  Contractors post payment bonds to ensure that the subcontractors and material suppliers that are working on the project will be paid.

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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Comparing Licensed, Bonded and Insured Contractors

What exactly is the difference between a contractor that is licensed, one that is bonded and/or one that is insured?  Competition in the construction industry is brutal.  Wading through contractors to determine the most qualified individual at the most reasonable price leaves many consumers baffled.

Where can consumers skimp and where shouldn’t they when it comes to hiring contractors?  Is hiring a contractor that is not licensed, bonded and/or insured worth the risk?  Probably not; in fact many consumers employing contractors without the proper credentials in place are placing their time, money and project completion in jeopardy.

Below we will detail bonded, licensed and insured contractors. This will allow consumers to have insight into why each is an important certification for hired contractors to have.

Licensed: Contractors are licensed as either a general contractor or specialty contractor.   Specialty contractors are those that offer a specific skill such as plumbing, electrical, drywall and the likes.  Specialty contractors are required to hold a special certification on top of their license.  The contractor’s license number is required to be displayed on any posted marketing materials.

Consumers are able to search for contractors by name or license number to ensure that the contractor’s license is up to date.  When an unlicensed contractor takes off after receiving a deposit there is little protection offered to the consumer this is one of the drawbacks of hiring any unlicensed contractors to do work for you.  An unlicensed contractor may cost less initially but there is no recourse if work is not done in specification to the contract.

Bonded: Bonds are purchased by contractors looking to prove their stability to consumers.  There are a variety of bonds that contractors can purchase to ensure they are trust worthy.  A bond is a contract between the contractor, the property owner and the bonding company.  It ensures that the contractor has financial backing incase the project is not completed as stated in the contract.  Common bonds that many contractors have are bid bonds, performance bonds and payment bonds.  All of which cover consumers from contractor negligence.

Insured: Contractors are required to have insurance to cover their business.  General liability insurance is purchased by contractors to insure that any damage to the property or people is covered financially if anything should happen while completing work at your location.

There are a few more things to consider when hiring a contractor.  Make sure that the contract is comprehensive and that no detail has been left out.  The contract should include the bid and scope of work expected to be performed.  It needs to offer an estimate on the price of permit fees as well as the payment terms, warranties and procedures for changes in the contract.  Often it pays to contact consumers that have recently used the contractor’s services to discuss the contractor’s ability to complete the job on time, within budget and so on.

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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Steps to Obtain Surety Bonds

Surety bonds are contracts between a business, bonding company and third party.  They are purchased by businesses to confirm the fiscal worthiness of a company as well as to offer affirmation on their reputation.   If a business should fail to comply with a contract the bond acts as financial coverage to the third party.

Obtaining any type of financial backing or support for a business venture comes with a process of verification.  The same is true of business of all sizes seeking surety bonds.  Companies specializing in surety bonds offer assistance to business owners seeking to obtain bonds through agents acting on their behalf.

Surety bond agents guide business owners through the bond process helping them to understand how the history of their business will affect the bonding process on a whole.  They are dedicated to working with business to examine contracts that require bonds and help determine a proper fit between their business, projects and the bond company.  A surety bond agent works to examine the business, assess client’s needs and prepares a submission to the surety bond company.  This is just the start for business owners looking for surety bonding.

The next step in surety bonding after an initial meeting between a bond company and a business owner is working with an underwriter to complete a history of your business and financial setup.  This is to access your overall risk.  The underwriter seeks to determine that you are not at any risk for being able to complete a project as specified within a given contract.  The information the underwriter will obtain consists of the business plan, future projections, positive cash flow, healthy credit, professional references and information on the chain of command within the business.

Prepare ahead of time by seeking out items such as annual finance statements for at least the last three years, cash flow statements, current accounts receivable and payable as well as an understanding of the accounting method used within the business.

Depending on the information provided on the company’s history and current financial situation the surety company give a rate in which the bond is to be issued at.  A solid history and financial status allows owners lower rates; a total of one to three percent on the total bond.  A business with risky historical data and uncertain financial situation can find themselves paying upwards of fifteen percent on a bond rate. The rate is dependent upon the risk the business, the more likely the business is to default the higher rate they must pay the surety company for the bond.  The bond is normally paid in one single payment.

Obtaining a bond can be an expensive endeavor.   To ensure that the business is qualifying for the best rate or to receive quotes from different companies before making a bond purchase go online and research the options available in the state in which business is conducted.  Surety bonds protect business owners and the people that are doing business with them from the risks involved throughout the process.  The most common bids obtained in the construction bonding process include: bid bonds, performance bonds and payment bonds.  Seek out a professional bonding company today to ensure the business and those it contracts with are covered in case of default.

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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The Importance Of Surety Bonds

Many business owners see the bonding process as one big pile of inconvenient paperwork. The reality however is that without the financial support of bonds along with the financial backing of surety bonding companies the entire construction process would be askew. This is why surety bonding is so important throughout construction process. Bonding ensures that all parties involved in a project are covered financially in order to complete the project at hand.  With bonding even if one party defaults on a contract the project will still have the financial backing it needs to continue.

Performance bonds are in place to guarantee that work on a certain project will be done to the specifications set forth in the contract within a certain timeframe. This allows other aspects of the project to be scheduled without the fear of loss that comes from rescheduling and such.

Consider the following: a renovation on a school. The process begins with the bidding process. School districts need to be certain that the contracted work can be completed within a certain time frame to ensure that when school starts in the fall the renovation is completed and children are not left without classrooms. If the work is not completed as specified many people will suffer. With bonds in place the obligee is protected from financial loss and is covered by the performance bond held by the contractor.

There are a variety of bonds used to ensure the flow of public construction projects. In order to bid on any government or public project contractors must have established a bid bond with a surety company. A surety company will look at the contractor’s history and determine a set fee on a bond. A bid bond states that the bid that is submitted is fair and reasonable. It states that a project can be completely fulfilled at the cost the contractor has bid. This ensures that contractors don’t manipulate the bidding process by submitting a low bid in order to get the contract only later to raise the amount required to complete the project.

Another bond that is required on public projects is a performance bond. A performance bond is a guarantee that states work will be performed as set forth in the contract. The work is performed using specific materials, with a specific time frame and is done so as stated within the contract. A performance bid protects the project owner from subpar workmanship and work not being performed within a certain time frame. With all construction projects a clock is ticking. One error on the part of a contractor or subcontractor can quickly spiral out of control. Bonds are used to ensure that the financial liability does not fall on the project owner. All contractors have the same goal: to complete the job in a timely manner with the expected outcome. Construction bonds help to protect all parties against financial catastrophe.

Surety bonds do not replace the need for insurance. Liability insurance is different that a contractor’s bond. Bid, performance and payment bonds are all used as another level of protection against things that occur that cannot always be controlled throughout the construction process.

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