Pinnacle Surety is a full-service surety bonds agency located in California. We hold licenses in all fifty states and are one of the top California Contract Surety Bond Brokers.
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Here at Pinnacle Surety, we have many years of experience working on types of surety bonds, from subcontractor bonds to construction bonds and various others. This wealth of knowledge puts us at the very forefront of surety bond providers and ensures that we give our clients the very best service. However, there are so many different types of surety bonds, it can be difficult to know exactly which one you need. Fortunately, we know the answer.
Here are just a few of the surety bonds in California that we offer:
We have a range of contract bonds, depending on exactly what it is you need. These may include:
- Bid bonds
Bid bonds are used in the procurement process for construction work or other related projects. The owner of the project will get one of these bonds as insurance in case the winning bidder fails to actually enter the contract and get started on the work. It guarantees that they will turn up for the job – and if they don’t the project owner can claim against the bond.
- Performance bonds
Performance bonds are imposed to ensure that the owner of the project (who is the trustee of the bond) is covered against the contractor who is expected to complete the project. The provisions of the bond state that the contractor will comply with all the terms and conditions set out in the project contract. Fundamentally, it helps to reassure the project owner that they are not going to lose huge sums of cash if the contractor disappears or does not complete the job to the requirements. If the contractor meets the terms and conditions, the project should be delivered on schedule and in compliance with the desired quality. If not, the owner of the project can claim against the bond for financial loss. This type of bond is also known as a construction bond.
- Payment bonds
Project owners are insured, by means of a payment bond, that the contract will cover all payments to subcontractors, employees and materials used to finish the project. Broadly speaking, payment bonds are made in an amount equal to the price of the contract for the project. This prevents the contractor from exceeding the agreed budget and charging the project owner.
Public works payment bonds
Government performance bonds are contract payment bonds that ensure that the main contractor in a public project satisfies all payment conditions for subcontractors, vendors, personnel, employees, stakeholders and associated project staff. This is a crucial aspect of ensuring that the work is done in compliance with the planned expectations and is on schedule and on budget.
Public works can be described as government-funded programs that support the construction or upgrading of public facilities. Popular examples include hospitals, bridges, highways and dams, and include works financed by local, state and federal allocations.
Payment bonds for public works function in virtually the same way as they do for the private sector but are also perceived to be a legal obligation of the state – whilst private works typically don’t have the same obligation. They are a three-way deal between the owner of the project, the contractor and the subcontractor.
Generally speaking, payment bonds are set up in tandem with performance bonds to ensure that public works programs fulfil all standards, although premiums are set at 1-2 percent of project costs. However, this amount can differ depending on a variety of financial factors including the size of the project and the credit history of those involved. Both payment bonds – public or private – should cover the entire amount of payment owed to all sub workers employed on the project, even if the possibility of a 100% payment to all contractors is very low.
Permit and license bonds
We offer a wide range of permit and license bonds at Pinnacle Surety. These forms of surety bonds can be taken out by both businesses and individuals. They are used when an activity or task needs to be carried out and the general public or official agencies need to be protected. If the private company or individual doing the task was to cause any harm to someone – perhaps a company defrauds a member of the public – that individual is covered by the bond, and so can make a claim to recover any lost money.
You can check out our website for the full list of surety bonds in California that we can provide here at Pinnacle Surety. We cover all sorts of industries and needs and can provide you with up to date expert advice and guidance on the best surety bonds.
Subdivision improvement bonds
Subdivision improvement bonds, or developer bonds, as they are widely labelled, are mostly about improvement and development projects. The nature of a subdivision bond is that public bodies or authorities are covered from modifications or developments made to land by the developer or the owner of the property. Essentially, the bond exists to help transfer the financial burden away from the public body and land owners or developers before the projects have been completed. They give public entities confidence that the developer can complete and finance all of the particular changes. These are also used in tandem with payment bonds.
There are all sorts of surety bonds in California and it can be a challenge to know which one you need. However, this is something that we are more than happy to talk to you about and help you to find the right one for you.