Bid bonds are used primarily in the construction industry to assure the contractor can fulfill the job responsibilities listed in the agreement for the agreed price for the project owner. It protects the project owner from financial loss in the event the contractor fails to meet contract terms or does not follow through on their bid.
Once a bid is accepted, a performance bond protects the client from a contractor’s failure to perform according to the contractual terms. If the completed work is unsatisfactory, the project owner may make a claim against the performance bond to provide compensation for the cost of correcting the subpar job.
Time is of the essence when you’re competing for construction projects. So why rely on someone else for your surety bonds when you can have complete control over your bonding process with Colonial Surety Company. With our Partnership Account® we give you the power of attorney to issue your own bid bonds on-demand or instantly order performance and payment bonds—all without involving an insurance agent or broker. We can also help your overall planning with better transparency, valuable business insight, and greater security.
Give Your Business Competitive Advantage with Bid and Performance Bonds
With the Partnership Account, you can view your bond history, credit trends, and bid bond spread info, which shows you the difference between your bid, the engineering estimate, and first and second bidder. This allows you to analyze your success against the competition. You also have access to an owner’s dashboard that provides a personal window into your underwriting profile. You can review our statistical analysis of your financial statements, professional credit scores, profitability, and much more. Contractors partner with Colonial because they are able to gain complete control of their bonding process with the ability to issue their own bid bonds and order performance bonds without using an insurance agent or broker. Colonial Surety Company is an insurance company licensed in all 50 states and U.S. territories. We are rated “A” Excellent by AM Best Company and United States Department of the Treasury approved. Contact us today to learn more about bid and performance bonds.