Performance Bond

A Performance bond is a contract between 3 separate entities to ensure that when a project taken by a contractor is completed, it is finished to the completion of the project owner or managers satisfaction or is completed on time, within the budget and to the contract specifications. The entities involved are usually the project owner or manager, this could also be the investor or oblige as far as the contract is concerned. The second concerned party would be the contractor or the principal. This is the person, persons, or company, whom would be responsible for fulfilling the main obligations of the contract, as in building the project to the satisfaction of the project owner.

If, in fact, the contractor does not fulfill his obligation to the project owner’s satisfaction or to the specifications set forth in the contract, which is where the performance bond comes into play. If, either the contractor quits the job or the requirements set forth in the contract are not met, then the third entity, the surety, who issued the bond at an expense to the contractor when the bid was originally placed, steps in and settles the matter, financially, with the project owner.  Due to possible issues along this line on government projects, any project that is publicly funded over $100K, a Payment Bond is required, by law, under the Federal Millers Act.

When a contractor does default or fails to fulfill his contractual obligations then the surety company usually has options written into the bond contract which may include a replacement contractor, rebidding the job for completion or paying the penal sum of the bond.


Application for


Current or expiring quote we are looking to beat:


Name of previous surety company writing to the bond:


Section I: Bond Applied for

Type of Bond

Effective Date

Expiration Date


Type of Company

CORP

LLC

DBA

Partnership

Bond Amount


(Obligee)


Obligee Address


Section II: General Information

Applicant's Name

Spouse Name


SS#

Spouse SS#

Home Phone


Residence Address

City

State

Zip


Status of Residency

Own

Rent

At Current Address Since


Date of Birth

Spouse Date of Birth

Business License Number


Business Name


Business Phone

Business Fax

Business Email


Business Address

City

State

Zip


Date Business BEGAN Under Present Individual or Firm Name

Business Tax ID


Has any company refused to issue bonds for any purpose?

Yes

No

Do you have any liens, claims or judgements against you?

Yes

No


Has applicant ever failed in business?

Yes

No

Has applicant filed bankruptcy in the last 10 years?

Yes

No


If yes, Chapter 7?

Yes

No

Chapter 11?

Yes

No

Chapter 13?

Yes

No


Date Filed for Bankruptcy?


Date of Discharge?


If yes to any, please explain:


Section III: Additional Parties

Name

Spouse Name


SS#

Spouse SS#

Home Phone


Home Address

City

State

Zip


Personal Financials

(if more than one owner, each has to fill out this app)

Statement of assets and liabilities as of


Assets Liabilities
Cash in Bank Notes Payable to Banks
Cash on Hand Notes to Others(excl. of equipment)
Stocks and Bonds Accounts Payable
Accounts Receivable Federal and State Income Tax Due
Notes Receivable All Other Taxes
Inventory Accruals, Payrolls, Etc.
Cash Value Life Insurance    
Equipment Due on Equipment
Real Estate Due on Real Estate
Other Assets Other Liabilities
    Surplus and Undivided Profits
    Capital Stock(if a corporation)
       
Total Assets Total Liabilities

Net Worth


Name of Owners

Name and Title of Officers

% of Ownership


Are you an insurance agent?

Yes

No

Agent License #

Agent State

Completion of this form constitutes permission for Cal Society Insurance Services to obtain customer information which will be used to determine bonding eligibility. This information will be held in the strictest confidence.