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Click the links below for a general description of common bond
types. Bonds are specific to an intended purpose and these
descriptions provide an outline only.
Contractor's Bonds
License Bonds
Other Types of Bonds Available
How Do I Obtain a Surety Bond?
Contractors Bonds
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The most common type of contractor's bonds are as follows:
Bid or Proposal Bond - This guarantees an owner (obligee)
that a party bidding for a contract will, if the bid is
accepted, enter into a contract and furnish the other necessary
bonds.
Performance Bond - This guarantees the owner that work
will be completed according to the contract specifications. A
performance bond is the key bond in a work project because the
owner of a project not only wants the work completed -- usually
within a specified time -- but also completed according to
specifications.
Payment Bond - This bond, also referred to as a "labor
and materials" bond, guarantees that bills for labor and
materials used in the work project will be paid as they become
due.
License & Permit Bonds
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These bonds are required of those who must obtain licenses or
permits from cities, towns, or political subdivisions before
they can proceed with various activities. These bonds, although
used for a variety of purposes, usually guarantee that the
persons who post them will comply with statutes, regulations or
ordinances that regulate their activities. If a claim is made
against the bond, the surety will work with the principal (you
the contractor or business owner) to resolve the problem.
Examples of Bonds Available
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Notary Bonds
Public Official Bonds
Business Dishonesty Bond
Outfitters Bond
Fish and Game Vendors' Bond
Defective Title Bond
Motor Vehicle Dealer Bond
Contractors License Bond
Produce Dealer Bond
Subsurface Sewage Disposal Bond
Water Well Driller Bond
Local License Bonds
ERISA bonds
Please call us if you need a bond and do not see your bond
listed here.
NOTE: we do not write bail bonds
How Do I Obtain a Surety Bond?
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Contact The Hartwell Corporation office nearest you. You will be
asked to provide a resume of the contractor and key personnel in
the business, a listing of the10 largest completed projects for
the past 5 years, and financial statements on the business and
personal financial statements of the owners or major
stockholders of the business. You will also need to complete an
application for bonding.
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Also referred to simply as “bonding,” a surety bond
is a three-party relationship similar to a credit transaction. It is where one
party (the surety) provides a financial guarantee for the second party (the
contractor or principal) to a third party (an obligee or owner of a project).
The surety bond is a promise by one party to guarantee that the second party
will successfully perform and/or pay all legally obligated costs on the project
to the third party. If the surety pays a claim against the bond, they will
require the principal to reimburse them for the amounts paid.