Performance and Payment Bonds
There are many different types of contractual obligations that require performance and payment bonds. The most common being the traditional construction process where a general contractor agrees to undertake a project such as a building, highway, utility line, etc. and the subcontractor trades work under the GC. However, this procurement process is ever changing. We now see owners breaking down major projects into numerous bid packages with a bonding requirement for each trade. The federal government is now awarding construction work under master contracts that may extend multiple years where bonding is required in increments throughout the term of the contract.
When you step back and consider all of the contract scenarios where performance and payment bonds are required, the possibilities are unlimited. This is particularly true when dealing with government agencies. Private industry is following suit and is requiring performance and payment bonds more often.
Bonding is too important to be left to chance. It’s imperative to deal with a qualified representative. Build confidence with a Smith Manus surety program.
A sizable percentage of the contractors bonded by Smith Manus do work for the federal government. We have the great privilege of working with some of the best run, most profitable federal contractors throughout the US. Many of the federal contracting businesses we bond today got their start as environmental firms; some are graduates of the 8-A program, while others work under a variety of federal designations.
The federal government is the largest consumer in the US and is spending money at record levels. With this in mind, the federal construction opportunities are enormous.
At Smith Manus our knowledge of the various federal contracting mechanisms is an invaluable asset to our federal clients. We have provided bonds under most of the major federal contracts (WERC, HERC, MATOC, SATOC and other delivery methods) and to most federal agencies. Our experience in managing the ins and outs of the federal arena is a huge plus to the businesses we bond. This is true whether you are an established government contractor or a new business learning the ropes.
Contact us today to learn more about our ability to develop surety programs for federal contractors.