Bidding on government projects at any level – local, state, or federal– can be a lucrative opportunity for many businesses. These projects tend to provide a great deal of financial opportunity and exposure. However, any government agency wants to know what you are going to do to ensure the project goes well. 
Promises and warranties are often not enough for most organizations. The need for surety bonds is often not only a good idea but also required by many government entities.
What Type of Surety Bond Is Best?
Government organizations often need some form of bonds from companies bidding on projects. These bonds will vary in what types of protections they offer. Some of the most commonly required bonds include the following:
- Bid bonds: This type of bond assures that the bidder will enter into a contract. They also assure that the bidder will furnish the necessary payment and performance bonds. In short, you are promising to obtain other bonds as required if you get the contract.
- Payment bonds: This bond ensures that all suppliers and subcontractors on the project get paid for the work they do under the contract requirements. It ensures that you, as a bidder on the contract, will pay those who do work for you.
- Performance bonds: In most situations, this is one of the most important surety bonds. It ensures that you will complete the work according to the terms outlined in the contract. It promises you will do the work as required to the specifications set in the contract.
- Ancillary bonds: This type of bond ensures that you will do all work that is integral to the completion of the contract. These might be aspects that are not directly performed by you. But, with ancillary bonds, you are still responsible for ensuring that work's completion.
Obtaining surety bonds is just as important as maintaining all types of business insurance. Most companies that want to complete government work must obtain these types of bonds.
At CCIS Insurance, we are proud to offer a variety of information on surety bonds. Talk to one of our agents to learn more about project-specific bonds. We can also inform you of additional requirements government projects may place on you. Go online or call CCIS Insurance today at 559-320-2247.