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abcfamily
09-28-2010, 09:24 PM
I am wanting to submit a bid with the county for the mowing of two parks and a bike path.
Some time ago I read a thread where someone said you can go through the bank to get a bid guaranty and not have to pay the full 10% yourself.
I have spent the last 20 minutes searching for it to no avail.
So if you know the thread that I am referring to and can find it for me that would be great.
This is my first attempt at non-residential work so any insight you are willing to share on bid guaranty's or contract bonds would also be much appreciated.
Thanks for your help!!

abcfamily
09-29-2010, 05:27 AM
Good morning bump!!!

txgrassguy
09-29-2010, 09:13 AM
Typically a bond or surety bond is all that is required to secure governmental contracts.
Banks don't issue these things, your insurance company does - speak with your G.L. provider for bond data as it is part of your underwritten package.

Now, if you are uninsured/under insured you will have a hard time acquiring any sort of surety unless you are individually wealthy and pledge assets as collateral.

abcfamily
09-29-2010, 12:15 PM
Typically a bond or surety bond is all that is required to secure governmental contracts.
Banks don't issue these things, your insurance company does - speak with your G.L. provider for bond data as it is part of your underwritten package.

Now, if you are uninsured/under insured you will have a hard time acquiring any sort of surety unless you are individually wealthy and pledge assets as collateral.

O.K. thanks I will contact my carrier, so are Bid Guaranty / Contract Bonds essentially the same thing? Sorry for my lack of knowledge, I do appreciate your help.

txgrassguy
09-30-2010, 09:06 AM
For your purposes they are close enough as the guaranty simply means you'll keep doing the job at a fixed price UNLESS you have waivers written in and confirmed by signatures - such as a fuel surcharge, late payment fees, etc.
The bond is there to commit you to paying for the remainder of the contract if you stop for any reason and a different company is brought in to finish. The bond says YOU pay and not the client - although this is usually associated with malfeasance and damage claims requiring outside corrective attention.

abcfamily
09-30-2010, 12:12 PM
For your purposes they are close enough as the guaranty simply means you'll keep doing the job at a fixed price UNLESS you have waivers written in and confirmed by signatures - such as a fuel surcharge, late payment fees, etc.
The bond is there to commit you to paying for the remainder of the contract if you stop for any reason and a different company is brought in to finish. The bond says YOU pay and not the client - although this is usually associated with malfeasance and damage claims requiring outside corrective attention.

That makes sense, I'll be honest you can get to feeling dumb with all the legal garbage in these contracts.:hammerhead: I know the most of it is to just protect the counties back.
Thanks for your help!!

a12
09-30-2010, 12:58 PM
You will need to go to a Bonding Agent to get a Bid Bond or Surety. Keep in mind that you will still end up paying a fee or a percentage of the total bid price if you are the successful low bidder. Good luck.

AdamChrap
09-30-2010, 06:52 PM
When I need a bid bond or a performance bond my local ins. company can do it that day. Not hard at all.