Bonding Services

Network provides a full range of insurance and bonding services for all types and sizes of commercial operations with particular emphasis on the construction industry.

Contract Bonds

A surety bond is an instrument under which one party guarantees the performance to another, that a third party will perform a contract. In general, Contract Bonds are used to ensure that a Contractor will complete a project according to the specifications of a construction contract. It is a three party agreement by which the surety binds itself to discharge the contracted obligations of a principal Contractor to an Obligee in the event that the Contractor fails to fulfill such obligations.

Bid Bond

A Bid Bond is used when a Principal is bidding on a tender or contract. Its use is that of a guarantee of good faith of a Principal/Contractor when bidding on a specific tender. It states that, if the Principal is awarded a bid, he will enter into a contract within the specified time frame and give the required security to the Obligee to ensure the performance of that contract. The Bid Bond prequalifies the Principal for the Obligee.

Consent of Surety

A Consent of Surety/Agreement to Bond is also used when a Principal is bidding on a tender or contract. It is used as a promise or agreement that, if the Principal is awarded the contract, the Surety will issue the required Bonds to the Obligee on behalf of the Principal within the time frame designated.

Performance Bond

A Performance Bond guarantees the performance of the contract awarded to the Principal, in accordance to its terms, conditions and specifications for the price as stated by the Principal.

Labour & Material Payment Bond

A Labour and Material Bond or Payment Bond guarantees to claimants (who are defined in the Bond) that they will be paid for both labour and materials used in the contract if the Principal defaults. The claimants named are usually subcontractors and suppliers.

Maintenance Bond

A Maintenance Bond guarantees maintenance of a contract for faulty workmanship and defective materials after final acceptance of the performance of the contract between the Principal and the Obligee. The time frame is noted within the format of the Bond.

Supply Bond

A Supply Bond guarantees the supply of materials or services as named in the contract by the Principal to the Obligee. As stated, this Bond is for supply only which differs from the Performance Bond.

Commercial Surety Bonds

While there are many different types of bonds which fall under this category, below are examples of a few others: Customs & Excise Bonds, License and Permit Bonds, Court Bonds, Fiduciary Bonds, Lost Instrument Bonds, Gas Bonds, Electrical Bonds, and more. Commercial Surety Bonds guarantee the Obligee that the Principal will perform duties in compliance with governing acts, regulations, and by-laws.

Release of Holdback Bonds

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