What is a Performance Bond in Oklahoma?
How much does a Performance Bond Cost in Oklahoma?
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 OK?
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 Oklahoma. Please call us today at (913) 562-6992. 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 Oklahoma?
We make it easy to get a contract performance bond. Just click here to get our Oklahoma Performance Application. Fill it out and then email it and the Oklahoma contract documents to [email protected] or fax to 855-433-4192.
You can also call us at (913) 562-6992. 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 OK
Just call us. We’ll work with you to get the best Oklahoma bond possible.
We provide performance and payment bonds in each of the following counties:
See our Oregon Performance Bond page here.
Essential Particulars Of Considering Contract Bonds
You need to understand that a Contract Bond is really important for anybody, but it's complex if you don't know anything relating to this. This isn't an insurance claim as this is a type of guarantee that the principal will properly complete the task. You need to understand that some people will surely expect you to get a particular bond before they opt for your services since it will also be a type of guarantee to them. They require this type of thing from you so you should look for an insurance company which could offer this to you. If you really want to think about a license bond, permit bond, commercial bond and more, you have to understand what it means.
A Basic Explanation On Contract Bonds
Contract Bonds will be asked for by the public as it can secure them and it may also guarantee that the principal will fulfill their duties. As the principal, you must obtain a license Contract Bond to guarantee that your company will adhere to the laws and you need a contract bond to ensure that a public construction project will likely be completed. These are some examples that would offer you an idea about a Contract Bond.
This is actually made for the clients because they will likely be protected by the bond, but it may provide benefits to you as well since they would trust you if you have this.
The Work Of A Contract Bond
Contract Bonds are referred to as a three-party agreement between the principal, the obliged and the surety company. The obliged is in fact the project owner and the principal is the employer or company that will do the work. Construction businesses will probably be required by the law to get Contract Bonds if they're hired for a public project. The government will require a construction company to get a host of bonds before they're allowed to work on a particular project. The bond will guarantee that the sub-contractors and the other workers will 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.
Applying For A Contract Bond
Insurance companies usually provide Contract Bonds, but there are standalone surety businesses that usually focus on these unique products. Surety businesses will obviously be licensed by a state Department of Insurance so you must check it first before you avail. It will not be easy to apply for a bond because the applications will have to proceed through checking before it is approved. The bond underwriters will first review you the financial history of the applicants, credit profile and other important aspects.
It only means that there's always a chance that you will not be accepted for a Contract Bond, especially if your credit history is bad.
How Much Are You Going To Spend For This?
There isn't any fixed cost if you are speaking about a Contract Bond as it will still depend upon different reasons like the bond type, bond amount, where the bond will probably be issued, contractual risk, credit history of the applicant and more. There are literally thousands of bonds available today and the cost will always depend upon the type that you'll get. It will not be a problem for the amount of bond because you will obtain a $10,000 bond or a $25,000 bond. For those who have a credit history that is above or near 700, you may qualify for the standard bonding market and you just need to pay about 1 to 4 percent of the Contract Bond amount. If you will obtain a $10,000 bond, it will only cost $100 to $400.
Your Application Could Be Refused
There is actually a possibility that your license and permit bond request will be denied by the surety company because it will invariably depend upon the information that they can get from the background check. If the surety company believes that it will be a risk for them to provide a Contract Bond to you, they will deny your application. Your credit score 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 hard to get a Contract Bond.
If you managed to get a Contract Bond even with a bad credit rating, you will probably pay an interest rate of 10 to 20 percent.
If you're going to get a Contract Bond, you need to be sure that you what it can offer. It won't be an easy task to be approved for this, but if you understand how it works, you'll also know if you're qualified or not.
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