Georgia and Tennessee Put Performance Bonds to Good Use

Written by JoAnn Smith on February 19th, 2015. Posted in Performance Bonds

performance bonds ensure
Performance Bonds Ensure Vogtle
Two southern states have shown the rest of the country how they use performance bonds to get the job done. While the two situations are vastly different, both in what they are trying to accomplish as well as how the performance bond is being utilized, the two states are great examples of a surety bond’s value. The examples are a great illustration of how a performance bond can be a versatile piece of equipment for any size or type of project. Both in Georgia and Tennessee the performance bonds are being used as a tool to ensure a difficult job is done and done right.
 

Blount County Tennessee Ambulances

In Tennessee the need for performance bonds strikes at the heart of an agreement between the county and one of its most vital services for its citizens. Currently Blount County is exploring all of its options when it comes to who will provide the county with emergency medical services. The existing contract with a private supplier is up. Instead of simply renewing the county is considering other options, including hiring another company. But it is also looking at the possibility of taking on the service itself. No matter what their decision, having a performance bond posted to ensure services are provided that fully care for its citizens will be a given.

Powerful Performance Bonds

Georgia, on the other hand, is struggling with a powerful question. In fact, the whole performance bonds question is centered on a pair of nuclear power plants, one built and one in the planning stages. Near Augusta the state has been overseeing delays tied to performance bonds at Plant Vogtle, the nuclear power plant that is currently three years and several hundred million dollars behind schedule. But the state is firm in its backing of nuclear power in general and Plant Vogtle in particular. Undeterred by the problems they have encountered, the move to begin plans on a second nuclear power plant complete with its own performance bonds is under way.

BuySurety has Performance Bonds

These two examples are just one of many that show how in today’s modern world performance bonds are the lynchpin to many projects. Because a performance bond can ensure even as controversial a project as a nuclear power plant, they are an indispensible tool for today’s modern businesses. Don’t let that important project slip from your grip because you weren’t bonded. Call BuySurety and make sure you have the right surety bonds for that next important job.

Tags: , , , ,


Comments Off on Georgia and Tennessee Put Performance Bonds to Good Use

Performance Bond Demand Grows as Construction Increases

Written by JoAnn Smith on February 12th, 2015. Posted in Performance Bonds

     performance bond demand
Construction and performance bond demand increases in improved economic climate
It shouldn’t be that surprising to find that performance bond demand is growing in many sectors. As the economy shows signs of recovery, so too do the need for surety bonds.  There have been more government spending on infrastructure such as highways. The recovery of the housing market means higher performance bond demands as the pace quickens. With this increase in the amount of building activity we see changes.  Among them, the use of surety bonds to protect investors from fly-by-night businesses is more important than ever.

Housing Construction on the Rise

A recent report from Michael Gapen at Barclay Bank further supports this. It shows a steady increase in enough factors to indicate that the economy has expanded 2.8% annually as of the end of 2014.  In December alone the housing market rose 1.2%. A big part of this was the construction of commercial buildings such as factories. These were doing even better with a 1.9% increase. All of this is bound to affect the performance bond demand. Many of these projects will need to be bonded to ensure timely completion.

Architects and Builders Increase Performance Bond Demand

Banks aren’t the only ones to notice the rising number of construction projects. The American Institute of Architects see a corresponding increase in commercial and business projects over the next year. Performance bond demands are bound to increase as these projects begin to get under way and grow in size and complexity. In addition, many economists predict an additional 3000 new jobs in construction in the next year. The impact of all of this growth is a stronger economy. Together these changes will fuel a greater performance bond demand. Most of it will be the result of new companies entering the field with less experience and a greater need for surety bonds.

Meeting the Performance Bond Demand

Luckily there are experienced surety bond providers.  BuySurety has the experience to meet this growing performance bond demand. As the country continues to see expanded growth, greater investment in infrastructure will continue. With the booming construction numbers, getting bonded will be more important than ever. For new businesses, finding a solid company to provide surety bonds such as performance bonds or license and permit bonds will continue to be a part of the business landscape. Don’t take chances. Look for the right source for your required surety bonds. When a performance bond demand is part of the requirements for that next project, make sure you are bonded securely with BuySurety.

Tags: , , , , ,


Comments Off on Performance Bond Demand Grows as Construction Increases

Performance Bond Requirements: Bid Specs vs City Codes

Written by JoAnn Smith on January 21st, 2015. Posted in Performance Bonds

performance bond requirements

Atlantic City will soon see new performance bond requirements.

  Say Atlantic City and what immediately comes to mind is the boardwalk with all of its glitzy casinos. Performance Bond requirements just don’t pop up in our consciousness as quickly. Maybe they should. A recent bid to provide the city with new Boardwalk tram service has hit a bump in the road because of a disagreement over Performance Bond requirements. It seems Atlantic City has one set of requirements on the books and another as part of its project bidding requirements. So which set of performance bond requirements takes precedence?

Bidding Performance Bond Requirements

When Atlantic City invited bids to provide the tram service along The Boardwalk, they did not include a Performance Bond requirement. When the bid was awarded, a competitor argued that the deal should be invalidated. Among the reasons was the lack of any Performance Bond requirements for the winning bid. It seems that these surety bonds are required by city code for anyone providing a service, such as these trams, for the city. With the surety bonds not part of the bid requirement, they weren’t provided or part of the costs when the bid was submitted and accepted. So now what?

Do City Requirements Trump Bid Requirements?

The winning bid by B&B did include proof that the company had the financial resources to provide and run the tram service. But it did not specifically provide Performance Bonds since they were not requested in the bid. The city’s Director of Licensing states that so long as he judges it to be within the best interests of the city he is allowed to issue specifications that are not always aligned with current requirements. But this may not get them off the hook. It turns out that the courts will have to decide if this is true or not.

Performance Bond Requirements Met at BuySurety

In the end this shows that even if the bid doesn’t require you to take out a Performance Bond as part of your bid, knowing local Performance Bond requirements is always smart. For any type of bid that involves government organizations, Performance Bonds are so often required that it is good policy to simply provide that possibility even if not a requirement. Not sure if your state or municipality requires a Performance Bond in your next bid? Be sure – talk to one of the highly knowledgeable customer service representatives at BuySurety and make sure your next bid is covered. Performance Bonds for any bid process with a government entity just make sense. Come by the BuySurety site today and make sure your next bid covers any Performance Bond requirement.

Tags: , , ,


Comments Off on Performance Bond Requirements: Bid Specs vs City Codes

Washington Fundraiser Bonds See New Regulations

Written by JoAnn Smith on January 2nd, 2015. Posted in Performance Bonds

     fundraiser bonds
Washington State has new Fundraiser Bonds regulations

The state of Washington has made changes to the regulations regarding the solicitation of fundraising for charitable donations. These changes, passed within the last few months, include changes to the requirements for fundraiser bonds. While the changes are not sweeping in nature, they will affect a wide array of organizations within the state.

They are primarily concerned with ensuring that anyone who solicits for funds on behalf of a charitable organization is properly vetted and covered by a fundraiser surety bond. While many charitable and non-profit organizations may have a small army of volunteers, the new regulations are primarily concerned with overseeing the conduct of anyone who is paid to solicit funds but is not an employee of the organization.


New Fundraiser Bond Requirements

This new fundraiser bond will now be required of anyone who solicits funds on the charities behalf, including anyone who receives payment for doing so. The types of organizations that will be included in this new surety bond requirement are:
  • Religious organizations
  • Charitable organizations
  • Educational organizations
  • Scientific organizations
  • Literary organizations
  • Environmental organizations
  • Humanitarian organizations
  • Patriotic organizations
  • Civic organizations
  • Organizations that test for public safety
  • Organizations involved in national or international organized sports
  • Organizations that help prevent cruelty to animals
  • Organizations that help prevent cruelty to children
  • Social welfare organizations
  • Organizations that support anyone who performs for the public safety including law enforcement and firefighters
The new surety bonds will be required of anyone working for one of these organizations who receive compensation in any form for soliciting funds to support these organizations. The new bond amount is $25,000.

Why Require Surety Bonds?

Many other states require the posting of a surety bond by anyone whose work entails handling money for a non-profit or charitable organization. The reasoning is clear – to protect the state from any financial loss that results from the individuals conduct while soliciting for these organizations. While employees tend to be covered by previous requirements, this new surety bond bill will also require employees that are hired through a contract or any independent contractors to abide by these regulations.

BuySurety Provides Fundraiser Bonds

If you or anyone in your organization thinks you may need to supply one of these surety bonds for your fundraisers, BuySurety can make help. Our friendly and courteous customer service agents can quickly walk you through the process and have you qualified for your Fundraiser Bond fast. Don’t put off any longer making sure that your non-profit or charitable organization is being properly covered. If you need any type of surety bond, BuySurety can help you get qualified and bonded quickly. Call us today to find out just how easy getting your Fundraiser Bond or any other type of surety bond can be.

Tags: , ,


Comments Off on Washington Fundraiser Bonds See New Regulations

Subcontractor Updates – Payment Bonds and Private Projects

Written by JoAnn Smith on August 5th, 2014. Posted in Bond Types, Contract Bonds, Latest News, Payment Bonds, Surety Bond Blog

     payment bonds      
Do you know if your private project has payment bonds attached?
Until the economy took a giant step backwards around 2008, it was rare to see a project require any kind of payment bonds if the project stayed within the private sector. But when the construction industry crashed alongside real estate, you began to see more and more construction projects that were not under the public umbrella come with the requirement for payment bonds or even sometimes performance bonds.
 
A Payment bond held by an owner or general contractor can impact what a subcontractor’s recourse will be in the case of non-payment. That is why it is always a good idea to find out at the beginning of a project if anyone responsible for the contract has taken out payment bonds or any kind of performance bond on the project. This is true whether a private or public project, but it is important to be aware that even a private construction project can come with payment bond requirements these days.

Payment Bonds on Private Projects

Because the use of payment bonds before the recent economic upheaval was relatively rare for private projects, it is important to understand if a mechanic’s lien or court action can be avoided with this bond. When times are good many project owners and general contractors don’t feel the need for these bonds. Now many projects require them.
 
Public projects have rules regarding collecting on bonds or civil actions, as set out in The Miller Act. However, when it comes to a private project the terms of the bond will govern. That is why it is important to ask and understand exactly what kind of payment bonds are related to the project and under what conditions they become enforceable. There are a few things you can generally expect, however, including:
  • The bonds will lay out specific notice requirements
  • The notice will most likely be required in the form of writing
  • Written notice will need to go to specific parties outlined in the bond
  • These parties need to receive written notice within a specific timetable
  • All requirements must be fulfilled to act on the bond

Where Contracts Rule

Many states, such as Virginia, specify that the contract supersedes all other agreements. It is vital to know if your state is one of these as that will affect your ability to enforce the bond. When this is the case, the terms of the bond cannot be outweighed by other legal considerations or interests. This is because any surety bond including a payment bond is a contractual obligation. So make sure you have a copy of that surety bond before you start the project.

Getting Bonded Correctly

Of course, it always helps if you have a reliable surety bond company like BuySurety to go to when it comes to payment bonds or clarifying your bond requirements. BuySurety is an experienced surety bond company. We have been providing everything from contractor license bonds to bid bonds and payment bonds since 1998 to a wide variety of businesses. Whether you are a small contractor just starting out or a large national company with wide-ranging projects, we can provide the exact surety bond to suit your needs at a price that is within your budget. Come by the BuySurety site to see just how fast and easy it is to get bonded with BuySurety today.

Tags: , , ,


Comments Off on Subcontractor Updates – Payment Bonds and Private Projects