Contract Surety Beyond Construction: Service and Supply Bonds

Contract Surety Beyond Construction: Service and Supply Bonds

By | 2020-07-21T10:26:13-07:00 November 28th, 2018|Uncategorized|Comments Off on Contract Surety Beyond Construction: Service and Supply Bonds

The spotlight on contract surety is most often related to public constructions jobs which are high profile and lucrative to all business associated with them. Often overlooked is contract surety for other governmental needs.  Our agents and brokers have plenty of contract bond sales opportunities with Service Bonds and Supply Bonds.

Local, state and federal governments all need supplies and services to operate. If they need pen and paper or a service to clean offices, they are required to give multiple companies a chance to compete by taking bids, evaluating the offers and awarding contracts.  Many companies small and large compete for these contracts, some of them are likely in your commercial portfolio and they will need a surety bond. These bonds assure the contracted company will perform the work and pay specified subcontractors, laborers, and material suppliers.

Before a company makes a bid, it must be approved or verified by the agency offering the job or product request.  For example, a bus company would need to be a state approved vendor before bidding on a service contract. Office supplies are only purchased from pre-approved companies, so states can regulate expenses.  Once a company is approved to bid on contracts, a bid bond is required. Once the contract is awarded the performance or payment bond must be obtained. Your commercial portfolio likely contains some of these approved companies or you may have companies that would qualify.

As with all contract bonds, Service and Supply Contract Bonds are underwritten with a full submission of a questionnaire and financial statements. The ability to obtain this bond is slightly less cumbersome than the standard construction bond. South Coast Surety can get a client bonded quickly based on current experience and credit situation due to our in-house underwriting authority.

Help your commercial clients get bonded and win contract bids now.  Email to find out more or call us today at 800-361-1720 and we will be glad to help increase your commission with Service and Supply surety bonding needs.

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