With real world construction, technology and industry management experience, RCM&D's offers structured business and surety solutions to address our clients' strategic challenges. We routinely perform contract reviews, conduct risk analyses, and coordinate joint ventures and teaming arrangements. We work in partnership with all related entities, including CPA's, banker and claim management resources.
This type of bond is designed to guarantee the performance of obligations under a contract. These bonds guarantee the obligee that the principal will perform according to the terms of a written contract. Construction contracts constitute most of these bonds. Contract bonds protect a project owner by guaranteeing a contractor's performance and payment for labor and materials. Because the contractor must meet the surety company's pre-qualification standards, construction lenders are also indirectly assured that the project will proceed in accordance with the terms of the contract.
The coverage provided by a bid bond is that the bidder, if awarded the contract within the time stipulated, will enter into the contract and furnish the required Performance and payment bond(s). Default will ordinarily result in the liability of the surety not to exceed the dollar value set forth in the bond for the difference between the amount of the principal's bid and the next low bidder who qualifies for the contract.
The coverage provided by a performance bond is that the principal will faithfully perform the terms and conditions of a written contract. In many cases, performance bonds incorporate payment bond and maintenance bond liability.
The coverage provided by a payment bond or labor and material bond is that the contractor will pay all subcontractors and suppliers for certain labor and material used in the execution of the work which he is obliged to perform under the contract.
The normal coverage provided by a maintenance bond is a guarantee against defective workmanship or materials. However, maintenance bonds sometimes incorporate an obligation guaranteeing "efficiency or successful operation" or other obligations of like intent and purpose for a specific term.
The coverage provided by a supply bond is generally for the supply and delivery of materials required for the completion of a construction or consumption project.
The coverage provided by a miscellaneous contract bond can cover any type of service contract of a non-construction nature. Examples include janitorial cleaning contracts for government and privately-owned office buildings and airports, security contracts, and transportation contracts (e.g. bus routes, car and shuttle).
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