The construction industry by nature can be risky for all parties involved. Because of these risks, contractors must be able to assure project owners that their obligations will be fully met. This is done through bonding. Bonds are a unique form of credit that guarantees the pre-qualification, performance and credit-worthiness of a contractor at a cost lower than the rates associated with typical lending institutions. Through a bond, the contractor, surety company and the project owner enter into a three-way contract in which the surety company promises to pay the project owner (city, state, etc.) in the event the contractor fails to fulfill the obligations of the construction contract.

Both the contractor and surety company are required to sign the bond. The project owner is not required to sign the bond, but if they fail to perform their own obligations under the construction contract, the contractor and the surety company are no longer bound.

Bonding has become the standard in the construction industry. Where once letters of credit and traditional bank loans were frequently accepted, today’s market requires contractors, large and small, to be properly bonded. And at DeSanctis Insurance Agency, we’re ready to help you with all your bonding and insurance needs.

Our Process
For more detailed information on the DeSanctis Insurance Agency surety bonding process, along with a helpful Bonding Guide, please click here.

   
100 Unicorn Park Drive         Woburn, MA 01801         781.935.8480        email: info@desanctisins.com
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