What You Need to Know About Bonds!
Bonds and how to get them represent one of the great "mysteries" for many
contractors. At Jasper, we make this process as simple as possible. Unlike
many other agencies, we take the time to nurture our contractor clients
from the very beginning, with special guidance aimed toward preparing them
for bonding even if they do not qualify at first. We work closely with
your accountants and other professional advisors to make sure that the
presentations made to the surety company show the best possible picture
of your operations.
Because we represent many different companies with different requirements
and underwriting criteria, we can match each client with just the right
bonding company. As your needs change, we can re-market your company to
the appropriate surety company at each level. We have power of attorney
for all our companies, which mean that we are authorized to issue the bonds
you need directly from our office. From the start-up contractor to the
large, well-established general and trade contractor with large bonding
programs, Jasper handles every client with the same personal attention
and hands-on approach.
We are completely familiar with federal, state, and municipal bonding requirements
in the Metropolitan area and our totally automated bond issuance facilities produce
the specific bond forms required by each of the various agencies with which our
contractors do business. You are never more than a phone call, email, or fax away
from the bonds you need to work in the challenging, complex and ever-changing
environment of public and private construction. With Jasper as your agent and
advisor, you have a partner on whom you can depend to get you the tools you need
to compete and succeed. We make bonding simple.
What is a Surety Bond?
A bond is a guarantee of the performance of a contract or other obligation.
Bonds are three party instruments, by which one party (the surety) guarantees or
promises a second party (the owner) successful performance by a third party
(the contractor). A bond is also an instrument of prequalification, whereby
one party says to a second party that the third party has been examined and
found to be qualified to complete the obligation or undertaking in question.
Surety is not Insurance
Insurance is a device whereby a group of people contribute to a common fund for
the express purpose of utilizing this fund to pay for losses sustained by
individual participants. Surety, on the other hand, is basically a credit
function. While insurance presupposes loss, surety does not. While the charge
for insurance and surety is called a premium, the terminology represents the
only real similarity between the two.