answersLogoWhite

0

  • Car Selling
  • Commercial Insurance
  • Verizon

How much does a surety bond on a contract cost?


Top Answer
User Avatar
Wiki User
Answered 2006-07-25 21:47:08

The general rule is 10% of the amount of the bond as the starting point and can be negotiated downward.

001
๐Ÿ™
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0
User Avatar

Your Answer

Loading...

Still have questions?

Related Questions

How much does a 2500 surety bond cost?

Surety Bonds are all based off your individual credit score. So, if you have good credit then your rate will be lower vs. someone who has bad credit.


How much 25000 surety bond?

Your Motor Vehicle Dealer License Bond cost is directly related to your credit and experience rates can start as low as $250 and go as high as $5000. You should know that unlike insurance, not all surety applicants can be bonded.


How much is the surety bond?

Most license & permit surety bonds will run an average of 1-3% premium depending on the type and bond amount however if credit is an issue they can get quite a bit more expensive


How would you determine how much of a surety bond is needed?

As a principal at SuretyBonds.com -- one of the nation's leading surety bond producers -- this is a question that I answer frequently. Because you posted in the Cars & Vehicles category, I assume that you need an auto dealer/motor vehicle dealer surety bond for your state. The best way to find out the required amount of your surety bond is to contact your state's government agency that handles licensing and registration for your industry. For example, if you're an auto dealer in Arizona, you'll contact the Arizona Department of Transportation. No matter what type of surety bond you need and what state you'll practice business in, inquiring with the government agency about the required bond amount is always a great place to start. Often, these government agencies will have this information on their websites. Once you know your required bond amount, you can contact a reputable surety bond producer -- such as SuretyBonds.com -- to purchase your bond. The amount you pay for your bond will depend on your credit score, the type of bond you need, the state for which you need the bond and a few other factors.


What does it mean to bond a company?

This is one type of bonding of a contracting company, but it will give you some idea as to why companies have a bond. hat should I consider when choosing a surety bonding? What should I consider when choosing a surety bonding company? Company? Posted On: Wednesday January 28th, 2004 at 12:00am EST SUMMARY A surety bond is a guarantee from a surety bonding agency that a contractor will complete an agreement; you will not be liable if the contractor does not complete the agreement. When choosing a surety bonding company, you need to take into consideration its reputation, experience and bonding process. What should I consider when choosing a surety bonding company? A surety bond is a three-party agreement between a surety company, an owner (obligee) and a principle (contractor). In this type of bond, the surety company insures the obligee that the principle will fulfill a contract. When a surety bond is used in the construction industry, it is called a contract surety bond. Business owners acquire surety bonds because they want to be sure that a contract is going to manage his enterprise well, deal fairly, perform obligations in a timely manner and keep promises. Business owners also pursue surety bonds because they provide protection in case the contractor defaults on the contract. Surety bonding is considered a part of the insurance industry, but it shares some characteristics with the bank credit industry. However, the surety company's primary duty is not to lend the contractor money. Instead, the surety company uses its financial resources to stand behind, or back, the contractor's commitment and ability to complete a contract. The surety bond is advantageous for the business owner because it assures that the contracted work will be completed, and protection will be provided if it is not. Surety bond companies charge a premium for prequalifying or underwriting the contractor. Unlike insurance companies, surety companies do not charge deductibles based on the probability of loss, because surety companies do not expect a loss to occur. Surety bonding companies do extensive research on the contractors that they bond. They request a list of good references from the contractor, as well as proof that the contractor has experience fulfilling the requirements of contracts. Surety bond companies will also evaluate a contractor's ability to obtain equipment necessary to carry out work, the contractor's financial ability to hire necessary employees, the contractor's credit history and the contractor's current bank relationships and lines of credit. Having this information will allows you, as a business owner, to make a good decision in hiring a contractor. A surety bond will also help convince architects, lenders and other principles on the project that the chosen contractor will complete the duties and contracts as assigned. Because the surety bonding company plays such an important role in assuring that your contractor will complete his contract, it is important to carefully consider what bonding company you will choose. If you have never used a surety bonding company before, it will probably be a good idea to find other small business owners in your area who have used surety bonding companies and ask them who they recommend and why. Make a list of these names and do your own 'research'-find out what contractors they bond, and track down other businesspersons who have used their services. After compiling a list of potential surety bonding companies, you will want to check with the U.S. Treasury Department or similar agency in your state to assure that the agencies are licensed for bonding. Some bonding agencies are contained within larger insurance agencies, so you will also want to find out if they have an agent to handle surety bonds specifically or if they use any agent available to draft surety bonds. It is also important to ask your surety bonding agency what screening they perform on contractors. Do they conduct background checks? Do they gather business reference? What is the upper monetary limit of their bonding services? How long have they been in the bonding business? What are their policies if contractors default on an agreement? Are they registered with the state Insurance authorities and/or the federal Treasury Department? The surety company is the primary risk-taker in the three-way bonding agreement, and so will want to thoroughly investigate your business plans and information about your business before bonding a contractor to do work with you. It is important to provide as much information as you can to the surety agency so they can properly underwrite the contractor and make sure you are protected from liability in case the contractor defaults on your agreement. A good surety bonding agency will charge a premium for underwriting your contractor and project, and will publish what their premium rates are. If a surety company does not publish their premiums or rates, you should contact your state's Insurance office to assure that they are licensed and comply with all state and federal regulations. Perhaps the most important thing to remember when choosing a surety bonding company is ensuring that you have open lines of communication. You need to choose a surety bonding agent you can talk to about your business concerns-and the bonding agent needs to be able to listen to you, and address your concerns to your satisfaction. Again, other businesspersons will likely be very useful to you in your bonding agency search. You may also want to ask contractors who have submitted bids to you what surety bonding agencies they have used in the past.


How much is a surety bond?

Most license & permit surety bonds will run an average of 1-3% premium depending on the type and bond amount however if credit is an issue they can get quite a bit more expensive. Contact me today to find out options to high premium such as co-signers and/or collateral.


How much does the mytouch 4g cost?

$450 without a contract $100 with a contract


How much does the HTC hd7 cost?

with contract: $100 without contract: $500


How much does it cost to purchase the surety bond required to become an auto dealer in Washington State?

A $30,000 bond is required to become an auto dealer in the State of Washington. Rates may vary from carrier to carrier, however I just wrote an auto bond for $300 per year. Craig Baerwaldt Allstate - Cascadia Agency 425-353-1499 www.allstate.com/cascadiaagency


How much is it to cancel your 2 year contract at att?

I do not know how much it will cost to cancel your 2 year contract at AT&T. It all depends on how much your bill is not and how much you have left on your contract.


How much does a 4G smartphone cost?

The average cost of a 4G Smartphone will vary depending on whether or not a contract is signed at the time of the purchase. With a contract, the phones can cost as little as $100.00. They will cost more than $200.00 without a contract.


how much does the iPhone cost?

$99It depends if you get a contract and from who your buying it from. Amazon is cheap and contract free.


How much does it cost to bond an employee?

It can cost a couple hundred dollars to thousands of dollars depending on the type of bond and the amount. The basic cost is a couple hundred dollars for a fairly simple and low bond.


How much to get bonded?

It all depends on why you need a bond. For example, a $10,000 bond for a janitor or notary public is typically less than $200 per year and could be as low as $50 per year. Getting "bonded" means that you want to purchase a "surety bond"


How much did a war bond cost in world war 2?

A War Bond cost 3/4 of it's face value. A $25 bond cost $18.75, and was worth $25 at maturity (10 years).


How much does the iPhone 5 cost without a contract from Sprint?

The cost of an iphone 5 without a contract from Sprint will depend on where you get it and the type of contract you do get. You can expect to pay between $200 and $600.


How much does a sidekick 3 cost without contract?

1,000,000,00


How much does it cost to text someone in India?

It depends on the contract you have.


How much does it cost to buy out of an mts phone contract?

$30 times the amount of month's you have left on the contract


How much does the SONY psp phone cost?

$100= with contract (Verizon) $400-$450= without contract


How much does the iPhone 5c cost?

$99It depends if you get a contract and from who your buying it from. Amazon is cheap and contract free.


How much does the Samsung Glyde cost from Verizon Wireless at full retail price without a contract?

The Glyde would cost $369.99 without a contract.


How much is 1 ream of bond paper cost?

230


How much does an iPhone 3G cost without contract in the UK?

How much does an iphone 3G cost without network in the UK?


How much does the lg breeze cost?

it cost $22 for just the phone with a 3 year contract