Contract surety bonds
UFG Surety contract bonds
For more than six decades, contractors have trusted UFG Surety with the bonds they need to grow their business.
Find a surety agent near you.
Verify existing contract bonds or inquire about the status of a bond in progress.
Also known in the industry as a construction bond, construction bonding or a contractor bond, this type of construction surety bond guarantees that a contractor will complete the construction project according to their bid and will pay its subcontractors, laborers and all suppliers.
Beyond the paperwork, a contract surety bond creates a valuable partnership between a contractor and the surety company. Having the support and financial backing of a trusted surety company is crucial to the growth and development of the contractor.
UFG Surety offers four types of contract surety bonds:
- Bid bond
Assures the contractor will enter into contract at the price bid and provide the required payment and performance bonds. - Payment bond
Promises the contractor will pay all suppliers, subcontractors, and laborers work completed on the project. - Performance bond
Promises the contractor will perform the contract according to its terms and conditions. - Maintenance bond
Also called a warranty bond, it is a promise that any material or workmanship defects discovered in the original construction will be repaired during the warranty period.
UFG Surety bonds fit a variety of needs by size and by type:
ufgQuick is our program for new or infrequent surety bond users. Current UFG agents can submit the bond conveniently online at ufgagent.com.- Provides bonds up to $500,000.
- Receive an immediate response (or within 24 hours if pended).
- Based on credit scoring.
- Single bonds up to $40 million range.
- Work programs up to $80 million+ range.
- Minimum requirements:
- Three prior years of fiscal year-end financial statements prepared by a CPA.
- Contractor’s questionnaire.
- Personal financial statement.
- Details on bank line of credit.
- Three prior years of fiscal year-end financial statements prepared by a CPA.
Why is it important to get prequalified?
Just as you check into financing before buying equipment or real estate, it’s best to determine how much bonding capacity you qualify for before bidding on jobs that require bonding. Even if you’ve obtained small license and permit bonds in the past, we suggest going through the prequalification process if you’ll be in the market for bonds for contractors such as bid bonds or performance bonds. These types of bonds are subject to more underwriting than license bonds, permit bonds and other types of non-contract commercial surety bonds. Even larger, established subcontractors may have to provide a bid or performance bond depending on the owner they are working for, or who is funding the project.
Questions?
Contact us today at surety@unitedfiregroup.com.