The importance of construction surety bonds cannot be overemphasized. A surety bond is a guarantee that a construction project will be completed, as per the terms and conditions of the contract.
A surety bond agreement consists of three parties: the obligee (the owner of a construction project), the principal (the contractor) and the surety company who issues the bond and assures that the project will be completed effectively.
In case the principal fails to perform their duties and obligations, such as pay laborers or material suppliers, the surety makes sure that all the obligations are completed.
With a surety bond, a contractor is considered more credible and reliable. Along with ensuring that contractors follow appropriate building standards and make full payments to their staff, a surety company offers expert advice on how to wrap up construction projects successfully.
However, many people are not aware of how surety bonds benefit the environment. Some construction surety bonds are designed to ensure that contractors and businesses adhere to environment safety rules and regulations.
For example, the U.S. Environmental Protection Agency requires municipal solid waste landfill owners to obtain closure and post-closure bonds. These bonds are designed to protect the environment. Along with municipal solid waste landfill, well drilling contractors are also required to secure closure and post-closure bonds.
Oil disposal is another example of a surety bond that is aimed at the safety of the environment. In states like Iowa, businesses are required to secure oil disposal bonds to ensure proper disposal of oil.
The terms of environmental protection bonds typically vary among states. But, they all come under the umbrella of license and permit bonds.
In a nutshell, there are several surety bonds that are aimed at protecting the natural resources and making our future safer and more secure.
Interested in obtaining a construction bond? Our team of professional underwriters can help you secure a contract bond efficiently and quickly.
BondPro provides surety bonds across all 50 states in the United States. We are committed to helping small and medium sized businesses and contractors compete in a competitive environment.
With more than 60 years of experience, BondPro offers a variety of surety bonds, including contract bonds, payment bonds, reclamation bonds, court bonds, commercial bonds, car dealer bonds, maintenance bonds, probate bonds, and warranty bonds.
Our team is fully equipped with the knowledge, expertise and resources to make the surety bond issuance process simpler and smoother. Contact us to learn more.