Contract Bonds
Surety Division
Contract Surety Bonds provide financial security and construction assurance on building and construction projects by assuring the project owner (obligee) that the contractor (principal) will perform the work and pay certain subcontractors, laborers, and material suppliers. As an extension of our TIS Construction Division, the Surety team has the specialized knowledge and experience to appropriately serve the construction industry.
The Surety industry takes three factors, known in the industry as the 3 Cs of Surety, into consideration when underwriting your contract bonds. By strengthening these, you will expand your ability to build a stronger bond program.
Character
Reputation and trustworthiness to complete your obligations under the contract.
Capital
Financial ability to complete the project and fulfill your contractual obligations.
Capacity
Ability to complete the project based on your previously performed scope of work.
TIS offers the following contract bonds:
Our
Commitments
As a TIS Surety client, you will receivemore than just great service. Our team is commited to
Consulting Services
Strategies to improve bonding capacity by taking factors into consideration such as internal accounting and financial systems, financial reporting quality, balance sheet management, capital structure, subcontractor risk programs, collection practices, and banking relationship management.
Explanation of surety underwriting criteria.
Identification and evaluation of surety carriers.
Assessment of surety underwriting strengths and weaknesses.
Surety Agent Commitments
Quarterly meetings to review performance.
Annual meetings prior to year-end to review internal financial performance and make any recommendations for year-end.
Maintaining a current file.
Indemnity, contract, and form analysis.
Communication with surety.
Contract Bond Types
Bid Bond
Assures that the contractor’s bid was submitted in good faith, that the contractor intends to enter into the contract at the price bid, and that the contractor will provide the required performance and payment bonds.
Performance Bond
Protects the owner from financial loss in the event that the contractor fails to perform the contract in accordance with its terms and conditions. Most performance bonds cover the workmanship of the project for one year after completion.
Payment Bond
Protects certain specified tiers of laborers, subcontractors, and material suppliers against nonpayment by the contractor. Generally, these claimants may seek recovery directly from the surety company under the payment bond. (Sometimes called a labor and material bond.)
Basic
REQUIREMENTS
By providing us with this information, we are able to obtain the best results when working with our surety companies.
Surety Submission Checklist
Current Contractor’s Questionnaire.
Past three fiscal year-end financial statements and, if available, a current interim financial statement.
Current personal financial statements on all owners, partners, and/or stockholders.
Current bank letter of reference.
Resumes on active owners and key people.
Copy of Certificate of Insurance (if not furnished by TIS).
Current contract status report.
Application Package
We know assembling the items listed above can be cumbersome so we’ve provided a Surety Submission Package that includes the questionnaire with the information we need to know about your business as well as templates for each of the other items required by the surety company.
Get a Quote
- Provide us with a little information about yourself and your needs.
- A TIS Team Member will reach out to gather additional information needed to provide an innovative, accurate quote.
- Execute and secure your surety bond.
Meet our Sales Team
Surety Bonds
cmartin@TISIns.com
joakes@TISIns.com
