Contract Surety for Construction
Machaen Insurance Agency specializes in contract surety for contractors bidding and building nationwide. Here's what each bond in the contract surety package is and when you'll need it.
Bid Bonds
A bid bond is submitted alongside a contractor's bid proposal and guarantees that if the contractor is awarded the project, they will sign the contract and provide the required performance and payment bonds at the agreed price. Bid bonds are typically set at 5% to 20% of the total bid amount and protect the project owner from the cost of re-bidding if the low bidder backs out or fails to execute the contract.
Full Details & Pricing →Performance & Payment Bonds
Performance and payment bonds are issued together once a contract is awarded and form the core guarantee behind nearly every bonded construction project. A performance bond guarantees the contractor will complete the project according to the contract's terms, on time and to specification; if the contractor defaults, the surety is responsible for arranging completion or compensating the owner up to the bond amount, usually equal to 100% of the contract value. A payment bond guarantees that subcontractors, laborers, and material suppliers will be paid for their work, protecting the supply chain from non-payment.
Full Details & Pricing →Maintenance & Warranty Bonds
A maintenance bond, also called a warranty bond, guarantees that a contractor will correct defects in materials or workmanship that appear after a project has been completed and accepted by the owner, for a defined warranty period, typically one to two years. Unlike a performance bond, which covers the construction phase itself, a maintenance bond picks up where the performance bond leaves off, giving the owner recourse if problems surface after the crews have moved on.
Full Details & Pricing →What We Need to Pre-Underwrite Your Bond Request+
Before we can shop your request to a surety, we'll ask for the following. Having this ready upfront is the single biggest thing you can do to speed up a quote.
- Completed contractor questionnaire and bond application
- Company financial statements for the past 2-3 years (reviewed or CPA-prepared preferred for larger programs)
- Current work-in-progress (WIP) schedule showing active and upcoming contracts
- Personal financial statements for each owner with 10% or more equity
- Resumes or a summary of ownership/management experience in the relevant trade
- Bank reference and trade/supplier references
- Details on the specific project: contract amount, scope, obligee, and timeline
- Certificate of insurance (general liability, workers' comp, auto)
- Signed indemnity agreement from the company and its owners