In the construction industry, the need to participate in surety bonding is widespread, especially as the project size and scope grows. Surety bonds are written agreements in which the 'Surety' makes promises or guarantees on behalf of a 'Principal' entity. Within the agreement, the Surety makes these promises or guarantees to a third party, called the 'Obligee' which is usually the project owner. Simply put, a surety bond is a promise to be liable for any debt, default, or the failures in a given project. Surety is an important tool used to fast-track projects by alleviating roadblocks and delays through assuring positive project outcomes. Having a knowledgeable advocate to both represent and streamline this process can ensure your company's interests and profitability are protected.
Surescape brings a wealth of experience and expertise to represent your interests and helps your company successfully navigate the surety bonding process. We structure bonding for high-profit contract opportunities which not only are designed to meet your company's unique needs, but are also structured to minimize the overall risk. As a result, we provide improved bonding capacity that enables your business to thrive with expanded operations and increased revenues.
The Surescape Difference
To enhance our bonding solutions, Surescape also provides our clients a number of consultative services which augment and streamline the bonding process. We have a variety of in-house capabilities and access to a solid network of industry-specialized experts spanning legal, human resources, accounting, and banking to assist you with contract refinements, financial analysis, project procurement, operational risk analysis, claims consulting, and employee training. Like many industries, you must also account for economic challenges, and how they impact operations, so we invest the time to proactively establishing a solid foundation for our clients which positions them to successfully deal with long-term marketplace ebb and flow. Throughout a relationship we can drastically expand our client's appeal in the surety marketplace, speeding up approvals and producing positive results in contractual, financial, and operational risk mitigation. Surescape manages and supports the bonding process for our clients, and we act to protect your interests in a variety of different bond types:
Contract Bonds are construction surety bonds required to guarantee a contractor will abide by the specifications within a construction project or contracted job. The bond is used to ensure the project owner that contractor will perform all specified work, as well as pay any required subcontractors, laborers and material suppliers. Surescape manages a variety of different Contract Bonds for our clients, including:
Performance Bonds - A Performance Bond is a financial guarantee that a contractor will perform work according to the contract and follow all contractual obligations. These bonds are used to safeguard the owner, contractor, and other entities associated with a given project. Government projects and some corporate entities often require this type of bond to protect taxpayer investment. In most Performance Bonds the amount of the bond is usually equal to 100% of the contract value, but they can also be structured as a percentage of the contract value.
Payment Bonds - A Payment Bond is usually required as a companion agreement along with a Performance Bond. The Payment Bond guarantees that any third-parties which are working under a bonded contractor will be paid, per the contract terms. Most often, the beneficiaries of this type of bond will include subcontractors, material suppliers, equipment rental companies, and the direct laborers. Payment Bonds are often utilized to guarantee payments on many large-scale public works projects.
Supply Bonds - Supply Bonds are bonds where the Principal has been awarded a fabrication or supply contract with a condition in which a Surety Bond is required to guarantee for the Owner the performance of the Principal's obligations within a contract. Supply Bonds can include fabrication, manufacturing, supply fulfillment, and the installation of those materials.
Warranty Bonds - Warranty Bonds are designed to safeguard project owners against poor-quality workmanship or substandard materials. Warranty bonds guarantee that any work defects found in the original construction will be repaired during the warranty period. In cases where the contractor fails to meet the client expectations, project owners can file a claim. Many Government and State projects mandate use of warranty bonds, and frequently more private construction projects are beginning to require them.
This type of bond provides the necessary assurance which allows an owner/developer to proceed in a capital-efficient manner in developing sales for a given property before all of the mandated improvements have been completed. A Subdivision/Improvement bond can guarantee the completion of a variety of specified improvements such as grading, storm drains, utilities, curbs and gutters, streets, sidewalks. Many jurisdictions require an owner or property developer to post financial security which guarantees the completion of designated improvements before granting construction permits, or allowing the submission of final parcel maps.
License & Permit Bonds
License and Permit Bonds are required to be in place by a business or any professional individual or organization that is opening a business which is regulated by Local, State, or the Federal government. This type of Surety Bond guarantees that the company or person being licensed will operate their business ethically and under the guidelines set forth by the governmental agency which is requiring the bond. These bonds can vary greatly, depending upon the industry or profession, and the nature of that particular business and its operations. Surescape has expertise in assisting with a variety of different License & Permit Bonds in application, completion, and the adherence, including the following:
State Contractors License Bonds City/County/Municipal License Bonds Street/Road Cut/Excavation Bonds Right of Way Bonds
Court bonds are a specialization within the surety bonding industry. Surescape has years of experience working with both attorneys and our clients to provide successful solutions to meet any court bond requirement. With our knowledge and understanding, we can properly advise on how these bonds will apply to various cases, and provide quick and efficient solutions when the need arises. We have expertise in assisting with a variety of different Court Bonds, but primarily we manage 'Appeal Bonds', and 'Release-of-Lien Bonds' for Surescape clientele.