Surety bonds serve an important role in the exchange of services for compensation. While traditional contracts, both verbal and written can be used to ensure that services for compensation are exchanged continually over time, surety bonds have their own distinct place in the construction industry. You see, when millions of dollars are on the line, surety bonds help keep all parties honest.
Bond Protects From Financial Loss
Bonds are a part of doing business, especially for government projects. The surety bond protects the government from financial loss and keeps contractors on track with their work. You can find bonds a lot easier than you think. That’s why researching the right bond is very important in ensuring success in your project. Although called by names in many different languages, surety bonds have been used to reinforce contracts for centuries.
In fact, the Surety Information Office (SIO) notes that “the first known record of contract suretyship was an etched clay tablet from the Mesopotamian region around 2750 BC.” The contracted farmer was unable to tend the client’s fields. Since this client happened to be a king, the farmer was in a serious predicament. After all, the criminal justice system wasn’t what it is today in the 28th century BC, and failing to appease a king would likely result in death!
In the construction industry, surety bonds something that have to paid out when a project not completed as specified or on time. In essence, these insurance policies held by the government to protect against force majeure events. These bonds can obtained through several independent entities. The most important thing for contractors and clients to remember about surety bond regarding construction projects is that a bond does not supersede the terms of an agreement.
Procure Surety Bonds
If you are in business, chances that you need to procure surety bond for an activity you involved in. They now required for prevailing wage and license holders in most states. Surety bonding is a method of protection for the consumer where surety companies will insure. Those who have a financial interest in the performance of certain activities or tasks. Contracts with bonding companies like LIBERTY MUTUAL GROUP surety bonds made to ensure. That workers will paid wages and individuals on building projects will complete the job they contracted to do.
Conclusion
When dealing with surety bonds, it is important to work with an expert who can guide you through the process. You need someone who understands the purpose and nature of surety bonds, both in legal and practical terms. Our team at LIBERTY MUTUAL GROUP surety bonds knows that if one party to a contract hurt, then all parties do.
That’s why he fights tirelessly on behalf of our clients to ensure that they get the compensation. They deserve for any project delays or other construction-related issues that may arise during the course of their projects. He also knows that these claims can complicated, and he will work hard. On your behalf to make sure you receive fair treatment and fair compensation.