A Guide about Construction Bond Companies (nielsonbonds.com)
The project owners involved in construction projects usually need to hire a contractor to work on the construction project. In order to involve a contractor in any construction project, the project owner demands a construction bond from the contractor. Construction bond is necessary to protect both the contractor and the project owner from any kind of risk. It is a kind of proof that the contractor is capable of completing the project and that he is competitive and finally strong.

A construction bond can be acquired by a contractor within a week only from licensed construction bonds Companies, offering surety bonds. If a company is not properly licensed, the contractor may be forced to buy a new surety bond with no refund. There are mainly 3 types of construction surety bonds- bid bonds, performance bonds and payment bonds. These bonds generally cover all types of issues that may arise in the construction project.

In order to avail contract bonds for public construction projects such as a bid bond or performance bond, obligee usually require construction bonding companies to have a minimum grade of B+ or higher from A.M. Best, a well-known rating agency in the nation that analyzes businesses' financial strength and ability to pay valid claims.

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