Daniels Insurance Agency
Get the Construction Bonds You Need Right Here
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 it is government and municipality work, a new residential complex, a commercial building or 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 personal 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 a bonding history that will allow you flexibility to grow.
Types of Bonds
Project developers might require a number of different construction bond types throughout the duration of a project to ensure it’s completed according to contract, including:
- Bid Bonds: Designed to reassure project developers that contractors have the financial credentials necessary to accept the job.
- Performance Bonds: Guarantee that in the event of a developer or contractor’s default, funds are available to finish the construction. Federally funded projects worth $100,000 or more require a performance bond.
- Payment Bond: Guarantee proper payment for services in the event 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 is unable to pay them for their work.
- Supply Bonds: Guarantee faithful performance of a contract 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 found to be 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 they can receive 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.
We’ll help you prepare for tomorrow today.
Daniels Insurance Agency is poised to help you navigate the risks you face today while assisting you with solutions and strategies to support your business as it expands and grows. We are also an integral part of the communities we serve, understanding the issues of our region to effectively serve our business and individual clients. Give us a call at 800-530‑8885 to find out how we can assist you.