Win more projects with a streamlined bond process.
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Learn MoreConstruction Bonds
Daniels Insurance Agency specializes in insuring contractors throughout New Mexico including those involved in excavation, paving, land clearing, residential construction, commercial construction, pool construction, and more. We also can help you with the bond process. Whether government and municipality work, a new residential complex, a commercial building, or a shopping center, having the right surety arrangement is needed to land new projects and drive additional revenue.
Daniels Insurance Agency can assist you with the process whether you are looking for your first bond or have an established history. Our surety experts will help you understand your obligation under a bond. We’ll also explain the underwriting requirements and why they are necessary, work with your CPA, or recommend a CPA specializing in construction to improve your financials and accounting methods, and provide broad access to markets and long-term surety relationships to help you build bonding history that will allow you the flexibility to grow.
Types of Bonds
Project developers might require several different construction bond types throughout the duration of a project to ensure it’s completed according to the contract specifications, including:
Bid Bonds:
Designed to reassure project developers that contractors have the financial credentials necessary to accept the job.
Performance Bonds:
Guarantee that funds are available to finish the construction if a developer or contractor defaults. Federally funded projects worth $100,000 or more require a performance bond.
Payment Bond:
Guarantee proper payment for services if lead contractors go bankrupt when working on projects. The bond amount can be used to reimburse suppliers, subcontractors, and others who worked on a project if the lead contractor cannot pay them for their work.
Supply Bonds:
Guarantee faithful contract performance to furnish supplies or materials. If the supplier fails to provide the supplies as agreed, the bond amount can be used to reimburse the purchaser for the resulting loss
Maintenance Bonds:
Required after construction to protect against design defects and/or failures in workmanship. If the project is defective during this time, the bond amount can be used to pay for repairs.
Subdivision Bonds:
These require contractors to build and/or renovate public structures within subdivisions – such as streets, sidewalks, and waste management systems – according to local specifications. If a contractor fails to do so, the bond amount can be used to complete the subdivision project appropriately.
Site Improvement Bonds:
Guarantee the completion of certain improvements made to projects; typically used for renovation projects that update older structures or other existing properties.
Contractor License Bonds.
Contractors must purchase these bonds before receiving their contractor’s licenses at the state, county and/or city level. These bonds ensure that contractors follow all applicable licensing laws and regulations.
We can provide you with industry-leading, innovative bond consulting services, including executing the appropriate bonds, reviewing contracts, and obtaining bonding capacity from surety companies.
Daniels Insurance Agency: Your Trusted Risk Advisor
Founded in 1937, Daniels Insurance Agency has three locations throughout New Mexico and is licensed in every state to serve not only our local region but also clients with a national footprint. As an Assurex Global partner, we are among the world’s most prominent independent agents and brokers. We’re also a member of the Independent Agents & Brokers of America, a national alliance of business owners and their employees who offer a wide range of insurance and financial services products.
Our staff of 42 employees throughout our three locations is ready to provide you with the white-glove service you should expect from your insurance consultant. In fact, you’ll always reach someone at Daniels Insurance Agency. You can depend on that.
Give us a call at 800-530 8885 to find out how we can work together.
