The Crane Agency Bond Department has the knowledge to help you negotiate the best bond program even in the toughest circumstances. Our proficiency, bond markets, and relationships allow us to succeed where other brokers fail. As your business partner, we will take the time to understand all aspects of your company and customize a surety plan that capitalizes on your company’s strengths. From the simplest license bonds to complicated joint venture performance bonds, or bonds supporting your internal operations, we can provide strategic surety solutions to enhance your business goals.
Whatever your business, wherever you are located, you can count on the Crane Agency for effective surety solutions. A surety bond is a three party written agreement where one party, the surety, obligates itself to a second party, the obligee, to answer for the default of a third party, the principal. A surety bond is an agreement in writing that usually provides for monetary compensation should there be a failure to perform specified acts within a stated period. If you are being required to provide a bond you are the principal.
Contract Surety Bonds provide financial security and construction assurance on building and construction projects by assuring the project owner (obligee) that the contractor (principal) is qualified and will perform the work in accordance with the contract documents and pay certain subcontractors, laborers, and material suppliers. In today’s competitive construction environment, a contractor’s ability to obtain contract surety bonds has a significant effect on his or her ability to acquire work. Contract surety bonds are required on most public projects let by federal, state or local government agencies, as well as, an increasing number of private owners and lenders. The most common contract bonds types are:
- Bid Bond - Assures that the bid has been submitted in good faith, the contractor intends to enter into the contract at the price bid, and to provide the required performance and payment bonds
- Performance Bond - Protects the obligee from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions
- Payment Bond - Assures that certain subcontractors, laborers, and material suppliers will be paid in the event of contractor default, and helps to prevent subcontractors from filing mechanics’ liens on the project
- Maintenance Bond - Guarantee against defective workmanship or materials for a specified period
Commercial Bonds provide financial security and construction assurance on building and construction projects by assuring the project owner (obligee) that the contractor (principal) is qualified and will perform the work in accordance with the contract documents and pay certain subcontractors, laborers, and material suppliers. There is an almost endless variety of Commercial surety bonds. These bonds are most frequently required for business owners who must be bonded in order to legally operate under state or local laws or regulations, or who are involved in a civil court action. Most business owners will require at least one Commercial bond in their possession to obtain a business license. Each bond is unique to the underlying law or court requirement. The most common commercial bond types are:
- License & Permit Bonds - These bonds guarantee a corporation or individual will operate in accordance with governmental statutes, regulations, and ordinances. There are many different types of license and permit bonds
- Court Bonds - These bonds are guarantees required by courts at various points in legal proceedings. These include appeal bonds, supersedeas bonds, replevin bonds, injunction bonds, etc. These bonds are also used in the administration of estates or the management of the affairs or trusts or wards.
- Miscellaneous Surety Bonds - Because so many bonds defy a simple classification and are unique in purpose they fall into a general classification known as Miscellaneous Bonds. These bonds include guarantees related to lost financial instruments, self-insured workers compensation programs, utility payments, union wage and fringe benefits, and leases. There are too many examples of Miscellaneous bonds to list all of them here.