Bonds
The Right Bond for the Right Project
From protecting the public to protecting your business, bonds wear a lot of hats and fill a lot of shoes. Finding the bond that meet your need without affecting your bottom line can be a difficult task. The Chris Batten Agency offers a variety of bond services including:
Bid Bonds promise compensation to the bond owner if the bidder is unable to meet the terms of the contract. This gives owners the confidence that the contractor has the financial ability to complete the project at the quoted price. The cost of the bid bond varies in regard to the contractual terms, bid amount, and jurisdiction of the project work but will typically require between 5% and 10% of the tender price.
Performance bonds replace bid bonds when contractors accept a bid and begin work on the project. The purpose is protecting financial loss to the owner if the standard and quality of the work does not meet the terms in the contract. In the case of poor workmanship, the project owner may file a claim against the performance bond, providing compensation from the cost of correcting the work.
A payment bond is a surety bond posted by a contractor to guarantee that its subcontractors and material suppliers on the project will be paid. They are often required in conjunction with performance bonds.
Construction bonds are a type of surety bon utilized by investors when beginning a construction project. With every public and government project, contract bonds or construction bonds are required by the State of Texas. Contractors bidding for construction projects are required to provide a contract bond to protect against potential default or failure to complete a project and it's specifications.