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> > Performance Payment Bonds Them
Category: Perfomance Bonds Articles
Published: Oct 3, 2013
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You are just starting your contracting business or you have been successfully operating for a while. But then you are told your next project requires a surety bond, which you previously thought to be either an Egyptian hieroglyph or a rare Australian animal species. Luckily, it’s not that complicated and you don’t need to book a flight to the other end of the world to find out what it is. Let’s have a look at the types of surety bonds most frequently required from contractors – performance and payment bonds.

The Basics of Performance and Payment Bonds

Broadly put, surety bonds are a type of financial guarantee that involves three parties. The principal, or your business, is required the bond which makes sure you will be held responsible should you fail to meet the requirements of your contracts with the obligee(s). The third party, called the surety, is the surety bonds company, which issues the surety bonds, thus “bonding” the agreement. In case of a claim against the principal, the surety will compensate the obligee for the losses. After that, the principal is required to reimburse the surety for that amount.

Performance and payment bonds are types of surety bonds that fall under the category of contract bonds. In fact, they usually go together, so it’s not uncommon to see them under one name – performance and payment bond. Under the Miller Act of 1932, regulating government construction projects, and then the Little Miller Act, dealing with state projects, contracting businesses are required to put a performance and payment bond if they wish to work on public projects. Performance bonds are there to make sure your business will stick to the terms set out in your contract. Payment bonds , on the other hand, are protecting all the people you are working with – suppliers, subcontractors, workers, etc. They are a guarantee that you will be able to pay them for labor and materials as stated by the contract.

If you want to bid on public work projects, you will also need a third kind of bond, called a TOGA VIRILISEmbellished loafers TzUTR
. It is there to ensure that in case you win the project, you will perform all the work at the price you put on your bid.

How to Get Bonded

Obtaining performance and payment bonds might sound like a big deal and a great amount of paperwork, but don’t be quick to get discouraged. The truth is that the whole process of approval, quotes and payment is now made easy through an online application. There’s no straightforward way of determining the cost of your surety bonds. It is determined by a variety of factors such as state-specific requirements and certain information about your business.

Typically, you’ll be required to pay anywhere between 1% and 5% of the total amount of the bond. In other words, if the total amount of your performance and payment bond is $100,000, you will have to pay a one-time fee of $1000 – $5000. Generally, for a project below $300,000, your percentage is calculated solely on the basis of your personal credit score. The process for more expensive projects is a bit more complicated and you will need to provide some additional details such as your business’ net profit. Companies who shows a higher net profit can qualify for a reduction in the price of the performance and payment bonds. Thus, if you are waiting for overdue payments, you might do wise to go ahead and collect them.

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Jesica Levi

I'm an actress and pop singer born in Argentina. I came to NYC to pursue my dream and I feel I'm living it every day. New York is magic and you have to be open to everything, because you never know who is seating right next to you on the subway or behind you in the line of the super market. I decided to create this blog about NYC because I realized how many powerful tips would have helped me if I knew them before from someone who was living in the city! So I thought that it would be awesome to share with you some tips about New York from a New Yorker. You can read more about me at http://www.jesicalevi.com I'm going to keep updating this blog so stay tuned :)

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Jesica Levi
February 13, 2016 at 11:50 am

I could not resist commenting. Well written!

After a few years, a broken nose or a bitten ear might serve to make a female boxer less attractive than she was to start out with. However, the amazing tone of a boxer's body is hard to beat when it comes to looking good.

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Just make sure that you don't scare her off during the first date, because you'll never catch her.

Running is great in that it's a highly competitive sport, but it's got a relatively low bar to entry. Anyone can be a runner; they just have to lace up some running shoes and open their door. And then run, of course. That part is kind of important.

Because of this, you can enjoy the view of fit runners locally almost anywhere in the world, especially if there is a university or town center nearby. That's right! You don't even have to turn on your television to see these beauties!

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Tennis almost missed out on being on our list. We tend to associate it with soccer moms in pleated skirts, who aren't really the pinnacle of what most people think is sexy. But the truth is that tennis is a hard-core sport, with tons of highly attractive players. In fact, with articles such as VERSACE Multicolor Angel Slides iwLceoRg
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Emma Larkins is a freelance writer. To learn more about her work, follow her on Twitter or check out her .

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