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WE CAN BOND YOU!
- Bonding & Construction Insurance Specialists
- Bid, Performance and Payment Bond
- Bonds Replacing Letters of Credit
- License, Permit and Subdivision Bonds
Service & Professionalism
All Bonds issued in our office. Same-Day
delivery of Bid Bonds if needed. We specialize in securing bonding
for contractors who have never been bonded or have had financial
difficulties in the past. Our goal is to help you maximize your
bonding capacity, win profitable business and grow your company.
How do I get qualified for
bonding?
The following information is necessary
to establish a bonding program with a surety company.
- Financial statements for the last three
years (if you have not been in business for three years you should
provide what is available) prepared by a CPA on a compilation
basis at a minimum.
- Business tax returns for the past two
years.
- Personal tax returns for the past two
years.
- Current personal financial statement.
- Current bank reference letter detailing
relationship and line of credit.
- Completed Contractor Questionnaire.
- Resumes of key people.
- Copy of current certificate of insurance.
- Letters of reference from suppliers, architects,
...general contractors and customers are helpful.
- Current Status of work in progress schedule.
When you are in the process of preparing
financial statements it is important that you are aware of the
three types of statements used.
1. A statement prepared on a Compilation
basis provides limited assurance to the surety company as to
the credibility of the figures presented. This type of statement
is based on the representations of the client to the CPA without
verification by the CPA.
2. A statement prepared on a Review basis
provides greater assurance to the surety company as to the credibility
of the figures as the CPA has investigated the representations
of the client in greater detail.
3. An Audited statement provides the most
assurance to the surety company as the CPA has verified the information
presented by the client.
We work closely with our clients to assemble
the above information for presentation to the surety companies.
Once approved by the surety company all bid, performance and
payment bonds are issued in our office with same-day delivery
when needed.
Bidding State Prevailing Wage
or Davis Bacon Projects?
Win more jobs and increase profits
with
our Approved Prevailing Wage Pension Plan!
The Problem...
When a contractor performs work
on a state prevailing wage project, they must pay employees predetermined
wages and fringe benefits. If they do not provide benefits, they
must pay the benefits as additional cash wages. Paying all cash
wages costs you the most money.
Why?
All wages are subject to the following
payroll burdens:
- FICA Contributions
- Workers Compensation Premiums
- Public Liability Premiums
- Federal Unemployment Taxes
- State Unemployment Taxes
This Results In
Unnecessary
Higher Labor Costs
The Solution
Use our plans to provide valuable
benefits to your employees while you gain the following benefits:
- Reduce your payroll burden
- Keep private work wages and government
wages closer
- Lower your bids to be more competitive
- Increase your profits
Contractors
Benefit Services, LLC
223 East Center Street, Manchester, CT
06040
Ph:
800-800-5206
Click here: CBS Fringes
Contact
Tony Gorman, CPCU, CIC
1.800.871.3040 Fax (860)
645.7460
223 East Center Street, Manchester, CT 06040
tgorman@gormaninsurance.com
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Bond Forms & Applications
Bonding and Construction Insurance
The Bonding and Construction division of
the Gorman Insurance Agency was established to provide professional
services to the construction industry. By concentrating our efforts
on a single industry, we are uniquely structured and able to
meet the special needs of contractors. Our agency maintains close
ties with the leading construction insurance and bond markets
in the country. Our experience and established relationships
assure you the most from your insurance and bonding programs.
We feel our role goes beyond providing
just insurance and bonds. We are advisors who can be a valuable
asset on your advisory team. We can help you when necessary by
helping your firm secure better banking, accounting and legal
relationships with professionals in those fields who specialize
in construction.
What is a Surety Bond?
A surety bond is a three-party agreement
between the surety (bonding) company, the principal (contractor)
and the obligee (project owner). There are numerous types of
surety bonds that cover a wide range of categories - contract
bonds, license and permit bonds, subdivision bonds and fidelity
bonds.
The most commonly utilized type of bond
is the contract bond. The purpose of contract bonds is to protect
the owner of a construction project against contract failure
and to protect certain laborers, material suppliers and subcontractors
against non-payment. There are three types of contract surety
bonds- bid bond, performance bond and payment bond.
A bid bond is
a bond submitted at the time of the bid on a bonded project.
Failure to submit a required bid bond may result in the rejection
of your bid. This type of bond generally states that the contractor
has financial assurance from the bonding company that his or
her bid has been submitted in good faith and that the contractor
will enter into the contract at the bid price.
A performance bond
is a guarantee by the bonding company that the contractor will
perform the work covered by the contract in accordance with the
terms and conditions of the contract.
A payment bond
is a guarantee by the bonding company that the contractor will
pay all suppliers and subcontractors providing labor and/or materials
for use in the performance of the contract.
License and permit bonds are used to guarantee things such as electrical
and plumbing licenses, road opening permits and hauling permits.
Subdivision bonds
are required by municipalities from a contractor developing land
for commercial or residential use to guarantee that the public
improvements ( roads, sidewalks, etc. ) will be constructed.
Fidelity bonds protect
against employee dishonesty. |