What is a Performance Bond in Kansas?
How much does a Performance Bond Cost in Kansas?
The cost of a performance bond can vary widely depending on the amount of coverage that is required. It is based on the total amount of the contract. Things that can affect this pricing are the perceived risk of the job, the financial position of the entity being bonded, plus other factors.
How much do bonds cost in KS?
Bond prices fluctuate based on the job size. The cost of a bond is estimated through a couple of back-of-the-envelope calculations. In general, the cost is approximately three percent (3%) for jobs under $800,000 and then the percentage is lower as the contract amount increases. We work diligently to find the lowest premiums possible in the state of Kansas. Please call us today at (913) 225-8501. We'll find you the very best rate possible for your maintenance bond or completion bond.
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These rates are for Merit clients, Standard rates are higher
How do I get a Performance and Payment Bond in Kansas?
We make it easy to get a contract performance bond. Just click here to get our Kansas Performance Application. Fill it out and then email it and the Kansas contract documents to [email protected] or fax to 866-594-2771.
You can also call us at 913-225-8501. We thoroughly review each and every application for commercial bonds and then submit it to the surety that we believe will provide the best p & p bond for your matter. The surety broker will perform a credit check. We have a high success rate in getting our clients performance and payment bonds at the best rates possible.
Find a Performance Bond near Me
What is a Payment Bond? Is it included with the Performance Bond? A payment bond is a bond that assures that the subcontractors and material vendors are paid. The payment provides that if the subcontractors are not paid timely and they make a valid claim, then the surety will pay them (and then collect and try from the general contractor).
What is a payment and performance bond? What is a contract bond?
Typically, a payment and performance bond are done together in the same contract by the surety. This way, the owner of the project is assured that the project can be completed pursuant to the terms of the contract and that it will not be liened by any contractor. The bond is performance security for the benefit of the owner.
Who Gets the Bond?
The general contractor is the entity that gets the bond. It is for the benefit of the owner (or in the case of government contract work, the governmental entity). It's the general contractor that has to apply for the bond and be underwritten before the performance and payment bond is written by the surety. This is also known as bonding a business.
How to Get a Performance Bond in KS
Just call us. We’ll work with you to get the best Kansas bond possible.
We provide performance and payment bonds in each of the following counties:
See our Kentucky Performance Bond page here.
Main Criteria In Finding performance bonds Defined in KS
performance bonds are quite complicated to know, especially if you don't understand how it really works. Most individuals consider this as insurance, but it's actually a form of guarantee that the principal will perform their work effectively for the obliged. Insurance providers usually provide a performance bond, but you can't call it insurance because its function is different. Most folks will definitely require you to get a performance bond before they consider your services as it's a type of guarantee to them.
If you would like to obtain a license bond, permit bond, commercial bond and more, you should know how they really work. We'll give you information on the significance of performance bonds and how they actually work.
The Importance Of A performance bond in KS
performance bonds will always be necessary to protect the public because it is a kind of assurance that your obligations and duties will be complete. You will need to get a license performance bond to ensure that the company will always follow the laws and you could get a contract bond to ensure that the public project will probably be completed. Usually, a performance bond is meant for the obliged as they are the ones which are being protected, but it would benefit you too as the clients will trust you if you have this. There are lots of bonds today and the type of bond that you would like to search for would depend on the situation.
The Work Of A performance bond in Kansas
performance bonds are referred to as a three-party agreement between the principal, the obliged and the surety company. The obliged is the project owner while the principal is in fact the employer or company that will complete the work. Construction organizations will probably be asked by the law to acquire performance bonds when they are employed for a public project. The government will probably be requiring a construction company to get a host of bonds before they actually work on a certain project. The bond will assurance that the sub-contractors and the other workers would be paid even if the contractor will default. The contractor will be covering the losses, but when they reached their limit, the duty would fall to the surety company.
Kansas - The Application For A performance bond
performance bonds are frequently provided by insurance organizations, but you may always search for standalone surety companies that would concentrate on these unique products. It won't be simple to apply for a bond because the applicant will have to experience a strict process that is quite similar to applying for a loan. The bond underwriters will still evaluate the financial history of the applicant, their credit profile and other important aspects to be sure that they should be approved. It also signifies that there is a chance that you will probably be denied for a performance bond, specially when the underwriters found something negative on the credit history.
The Price Of A Payment bond in KS
You can anticipate that a performance bond will not have a fixed cost because it will depend upon different reasons such as bond type, bond amount, where the bond will likely be issued, contractual risk, the credit score of the applicant and many more.
There are plenty of bonds right now and the cost will depend on the kind of bond that you could actually obtain. The amount of the bond can also be a factor because you can get a $10,000 bond or a $25,000 bond.
If you have a credit history of above or near 700, you will surely qualify for the standard bonding market and you only have to pay a premium that's 1 to 4 percent of the performance bond amount. If you may get a $10,000 bond, it will cost around $100 to $400.
Your Application Might Be Denied
There's actually a possibility that your license and permit bond request will be declined by the surety company because it will usually depend upon the information that they can get from the background check. If the surety company believes that it will likely be a risk for them to provide a performance bond to you, they will deny your application. Your credit rating is one of the most important factors to be approved for a surety body because in case you have a bad credit rating, it will likely be tough to get a performance bond.
If you could obtain a performance bond even in case you have a bad credit score, you will obviously pay an interest rate of 10 to 20 percent.
If you intend to get a performance bond, ensure that you know very well what it can offer before you decide. It's tough to apply for it, but if you understand more relating to this, it will likely be a little easier to be accepted.