- As the "obligee" under this bond it provides you with security on your smaller subs.
- Each of your subs who supply this annual bond to you will be covered for all qualifying projects with you during the year
- You will be provided with a portal allowing you to see all contractors who currently have such a bond listing you as obligee and all projects which have been added to the master bond by endorsement in order to simplify your administrative processes
- Many smaller subs are not large enough to obtain a traditional bonding facility but are entirely capable of performing smaller projects
- Your own bonding company will be pleased to see you have protected yourself as their view is that subs over $100,000 should be bonded
- The cost is less than the minimum premiums normally charged on one such project using the traditional method and any subsequent jobs during the term of the bond will be at no extra cost which makes this a cost effective alternative for you since ultimately the costs to the subcontractor would be included in an increase in their tendered price.
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- As the "principal" under this bond; you would apply for and pay for the bond and you would provide one to any participating general contractor.
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The cost is modest and it is a blanket annual bond so you pay once and any subsequent qualifying projects you undertake with that same general would not incur extra costs
- For those who are not large enough yet to qualify for traditional bonding; it is an entry into that market and the establishment of a relationship with a bonding company
- It will increase the number of projects you have access to and in these economically uncertain times, growing your opportunities is important
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