What is a Performance Bond in West Virginia?
How much does a Performance Bond Cost in West Virginia?
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 WV?
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 West Virginia. 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 West Virginia?
We make it easy to get a contract performance bond. Just click here to get our West Virginia Performance Application. Fill it out and then email it and the West Virginia 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 WV
Just call us. We’ll work with you to get the best West Virginia bond possible.
We provide performance and payment bonds in each of the following counties:
See our Wisconsin Performance Bond page here.
Understanding Distinct Guidelines And Advice When Thinking Of Surety Payment/Performance Bonds
Surety Payment/Performance Bond is something extremely important for anyone, however it is a bit complicated if you do not know anything relating to this. Basically, this isn't an insurance claim, but it's a form of guarantee that you, as the principal, will do the work appropriately for the obliged.
You must know that most folks would require you to get a certain bond before they opt for your services since this will be a kind of guarantee to them. As they actually want this from you, it's important to seek out an insurance company which will offer this to you.
If you wish to get a license bond, permit bond, commercial bond and more, you'll understand what Surety Payment/Performance Bond means. Here are the things that you have to know.
The Significance Of A Surety Payment/Performance Bond
Surety Payment/Performance Bonds are always in demand since they protect the public. It is a kind of guarantee that the obligations and duties will probably be completed. You should get a license Surety Payment/Performance Bond to make sure that your company will stick to the laws and you normally obtain a contract bond to assurance that a public project will be completed. Typically, a Surety Payment/Performance Bond is intended for the obliged as they are the ones which are being protected, but it would benefit you too since the clients will trust you for those who have this. There are lots of bonds today and the type of bond that you want to search for will depend upon the specific situation.
The Work Of A Surety Payment/Performance Bond
Surety Payment/Performance Bonds are a three-party agreement between the principal, the obliged and the surety company. The obliged is the project owner while the principal is actually the employer or company that would complete the work. Construction businesses are usually required by the law to acquire Surety Payment/Performance Bonds when they are chosen for a public project. The government would actually demand a construction company to help secure a host of bonds before they work on a specific project. The bond will guarantee that the subcontractors and the other workers could be paid even if the contractor will default. The contractor will probably be covering the losses, but when they already reached their limit, the duty will fall to the surety company.
Applying For A Surety Payment/Performance Bond
Insurance providers typically provide Surety Payment/Performance Bonds, but there are some standalone surety businesses that specialize in these products. Surety companies will definitely be licensed by a state Department of Insurance so you should check it first before you avail. It will not be easy to apply for a bond because the applications will need to go through a background checking procedure. The bond underwriters will first review you the financial history of the candidates, credit profile and other important aspects.
This means that there's a possibility that you are going to not be approved for a Surety Payment/Performance Bond, specially if your credit rating is bad.
How Much Are You Going To Spend?
There's no set cost for a Surety Payment/Performance Bond because it depends on numerous reasons like bond type, bond amount, where the bond will likely be issued, contractual risk, the credit history of the applicant and many more.
There are lots of bonds right now and the cost will depend upon the kind of bond that you could actually obtain. The amount of bond that you will get will also be an issue because you could get a $10,000 bond or a $25,000 bond.
If you have a credit score of above or near 700, you will surely be eligible for the standard bonding market and you just need to pay a premium that is 1 to 4 percent of the Surety Payment/Performance Bond amount. If you can obtain a $10,000 bond, it'll cost around $100 to $400.
Your Application Might Be Declined
There is a big chance that your license and permit bond request will be refused by the surety company because it will invariably depend upon the results that they will get from the background check. If the surety company thinks that it would be a risk for them to give you a Surety Payment/Performance Bond, they will deny your application. You credit history will really be an important factor if you want to be accepted for a Surety Payment/Performance Bond because if your credit history is bad, it will be hard to be approved.
If you managed to get a Surety Payment/Performance Bond even with a bad credit rating, you'll probably pay an interest rate of 10 to 20 percent.
You should understand that a Surety Payment/Performance Bond is vitally important for companies, specifically once they will be doing a government project. Surety Payment/Performance Bonds will likely be used for many things, but they have one thing in common - they will always secure the obliged.