We are the experts in providing fast surety and bid bonds. We love providing bid bonds, contract bonds, surety bonds, performance bonds, etc. We also have huge success with minority contractors and their rates!
Bond Education Center.
The bond education center discusses all you want, and then some, about a surety bond, bid bond, claims and associated matters. We use a variety of articles and videos to try and explain the issues that most of you face in trying to figure out just what to do. That way, you can get a bond and then focus on what's really important - getting to work.
Construction and contractor risk center.
Here, we provide free materials to all of our contractors. These topics tend to center on risk management, but we also try and sprinkle in some sales and marketing tips.
We understand the intracacies of WBEs. Women-based enterprises have several peculiarities that apply to them. We have worked with several WBEs and utilized our network to find a program that works for their specific needs.
We understand minority contractors.
Minority contractors are an important part of the general construction community. We work with minority contractors, including those that contract with the federal government.
About SWIFTBONDS - We are the EXPERTS when it comes to any surety bond or bid bond.
Experience our famous 2 Hours or Less! bond approval.
Experts that KNOW how to get you approved fast
Experts that KNOW how to get your bond approved for less – we know the bond companies formulas and use that knowledge to your advantage.
We work WITH you to get the best bond available at the lowest price and lowest reserve amount
We LOVE comparisons; call a local insurance broker and see if they can match our knowledge of bonds
■ FAST (2 Hours or Less!) and secure application process
■ Expert knowledge
■ Friendly and responsive customer service
■ It’s our relationships that make us a leader in the surety business
■ We built those relationships through HARD WORK – the same way you build your business
The Owner, herein called the Owner, will receive sealed bids for the Project, until 2:00 P.M., Local Time on the 19th day of December, 2013, at Hot Springs City Hall, […]
It’s unfortunate, but we regularly work with construction companies that have unintentionally bet their business. They do this by taking on risk where they didn’t expect. We work […]
Recent Educational Materials
Just go to our Bond learning center
to find our recent educational materials and helpful hints for contractors.
Bid Bonds: How They Work
In order to have a better understanding of what bid bonds are, it is first important to have an understanding of what surety means. In the bidding process (particularly in the construction industry) not only in government or federal projects but in big budgeted projects as well, the surety (normally an insurance company or a bank), sets up a guarantee that the obligations set forth in the contract for which a bid was placed, will be done.
Also known as a bid security or bid guaranty, a bid bond is the specific part of the process of bidding that assures the project owner that the winning bid will be honored. When dealing with huge amounts of money, bid bonds facilitate in making the process proceed in a smooth manner. Without the bond, the owner will have no idea as to who the bidders are, and whether or not they are financially solvent.
How to Use a Bid Bond
Every bidder is required to put up a (usually) small percentage of the specified contract amount in order to qualify for bidding. The rate typically ranges between 1 and 3%. When there is no cap in place for a particular project being bid on, the base amount can be an amount agreed upon. The surety will hold the money for safekeeping until the winning bid is announced. The bid losers will then be refunded for the bond that they put up.
On the other hand, the winning bidder will be required to put up a performance bond that will assure the owner that the job will be completed in a timely manner as specified in the contract. This is normally 10% of the total budget for the project. The bid bond is usually not refunded and just rolled into the new bond if handled by the same surety company.
In case the winning bidder does not deliver on their obligations, the surety will pay the project owner the difference between the amount of the awarded bid and the net best bid amount, but this should not exceed the bid bond total. This is known as liquidated damages. The surety company will hold on to the winning bond, and will use it instead to help defray the cost of damages.
A bid bond is a legal document that binds the signer to a specific part of the bidding process. Bid, payment, and performance bonds are all included in the bids and awards process, depending on the discretion of the project owner. Ultimately, it is the owner that will be responsible to pay for all funds required for the project. But since he is not the one handling the procurement of the materials and the hiring of the required labor, the owner would naturally require assurance that the money to be paid to the contractors will be appropriately handled.