The is an annual blanket bond which will provide security to the obligee/owner/general who has asked his sub to provide this bond
for projects undertaken for that obligee/owner/general during the year which qualify:
A contract surety bond includes 3 parties -
The Subworks bond is written with the general contractor (or other contractor who is hiring a subcontractor) as obligee. The principal is the subcontractor whose work is being bonded and who arranges for and purchases the Subworks bond.
Type of Work Accepted and Excluded
Maintenance and warranties are not covered by this bond. Environmental work, curtainwall, subdivision agreements and completion guarantees likewise would not fall into this program. Each qualifying contract undertaken by that subcontractor to that specific general contractor will be added to the bond by endorsement and available online to the general contractor to ease administrative concerns.
The maximum size of projects covered by this blanket bond is $300,000.
Term of Bond
It has an annual term and this is a claims made policy so any qualifying claims made during that term will be covered.
Bond Amount
Claim Process
Indemnification
In other words if there is a claim to the bonding company on your bond, all indemnitors - the companies, and shareholders personally must repay them.
the obligee - the party who hires another party to complete a contract
the surety - the bonding company
the principal - the party who is hired by the obligee and whose work is being secured by the bond
Unlike a traditional CCDC Contract Bond the Subworks bond maximum payout will be limited to $40,000 instead of 50% or 100% of contract amount.
Once the general contractor has declared the subcontractor to be in default of a qualifying project the general contractor will
make a written demand to the surety company and provide sufficient documention for the bonding company to substantiate the claim. If the default is indeed substantiated; unlike the traditional CCDC Performance Bond - the only option available is monetary - in other words the bonding company will not have the option to finish the project.
As with a traditional contract bond you are required to sign an indemnity agreement which will indemnify and save harmless the Bonding Company from and in respect of any and all liability,
claims, and/or demands to which it may be exposed or subject and all loss, costs, damages and expenses whatsoever, to include legal and law cost at law or in equity, or liability therefore,
which it may be called upon to sustain or incur by reason of its said Bond, or making any investigation on account of same, and to immediately upon the demand of said Company place in its
possession funds, either in cash or liquid securities, sufficient to meet the payment of any loss, damage, cost, charges or expenses, that it may be called upon to sustain by reason of its said Bond,
and to admit the voucher of other proper evidence of payment by it of any loss, damage, costs, charges or expenses under its said Bond to be conclusive evidence against us and
each of us of the fact and extent of our liability to it under this agreement.