Surety Bond Professionals (781-776-9022) has launched an online application service for contractors applying for performance bonds.
The recently launched online application system is open to all types of construction contractors, including those working on government projects. Accredited by the Better Business Bureau, Surety Bond Professionals requires minimum paperwork and offers fast turnaround times.
For more information, visit https://www.suretybondprofessionals.com
The new online application system for securing performance bonds helps both the contractor and the project owner because it holds both parties responsible for the timely completion of the project. According to Surety Bond Professionals, performance and payment bonds, also called P&P bonds, are often used for private and public projects to ensure that the work will be completed on time and that the contractor will pay all of their contractual obligations within the grace period.
While performance and payment bonds are almost always used together, Surety Bond Professionals explains that the two serve different purposes. A payment bond guarantees the contractor will pay all the laborers, suppliers, and service companies needed to complete the project.
Performance bonds, are also issued through a surety bonding agency like Surety Bond Professionals, to ensure that the project will be completed properly and that it is to the standard agreed upon in the contract. It protects the owner from unsatisfactory work or delays in the building schedule. If the contractor does not meet the contractual agreement, the owner can present the performance bond to the surety bond company that issued it and receive their claim. The surety bonding company, in turn, will be responsible for seeking reimbursement from the contractor. This way, owners are not subject to the hassle of suing the contractor themselves.
Since the surety bonding company takes on a lot of the risk, they do extensive background checks to minimize it. A company representative said: “Before approving a P&P Bond, the surety company ensures that they check the applicant’s character, history of contract performances, necessary equipment, financial strength, history of paying subcontractors and suppliers on time, bank relationships, and an established line of credit. These factors go into the underwriting process and affect the single/aggregate program considerations.”
More information is available at https://www.suretybondprofessionals.com