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Contract Surety Bonds

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Contract surety bonds are typically required to ensure that the terms of a contract will be met. Many different types of contractors need contract surety bonds in order to compete for contracts.

Click on the links below to learn more about the types of contract surety bonds Selective offers.

Bid Bonds
Performance & Payment Bonds
Supply Bonds
Site Plan Bonds
Contractor Express® Bonds


Bid Bonds

Bid bonds are often required when a contractor bids on a project. They guarantee that if the contractor is the low bidder, he or she will enter into the contract and provide the required performance and payment bonds.

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Performance & Payment Bonds

The performance bond guarantees that the contractor will perform the work in accordance with the terms and conditions of the contract.

The payment bond guarantees that the contractor will pay those supplying labor and materials to the job. This type of bond may be combined with a performance bond.

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Supply Bonds

Supply bonds usually include both performance and payment obligations, and simply guarantee that some specified material or equipment will be supplied.

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Site Plan Bonds

Site Plan bonds guarantee that public improvements (streets, water, sewer, etc.) required in conjunction with the physical improvements (additions) to an existing commercial building will be completed in accordance with bond ordinances.

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Contractor Express® Bonds

Selective’s Contractor Express® program offers immediate prequalification and less rigorous underwriting requirements on our surety, bid, performance, payment and supply bonds to meet the needs of time-pressed contractors working on smaller projects.

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Financial stability is one of the most important criteria for selecting a company to provide your contractors' bonds. Selective is listed among the highest rated sureties for financial strength, with an "A" (Excellent) rating by A.M. Best and an A- rating by Standard & Poor's Insurance Rating Service. We are members of the Surety Association of America, The National Association of Independent Sureties, The Utility and Transportation Contractors Association, and The National Association of Surety Bond Producers. Selective Insurance Company of America is approved to issue U.S. Government Performance and Payment bonds, and has a current U.S. Treasury Limit of $48,914,000 (July 2010) "US Treasury Limit".