UNDER 200K PROGRAM
(for contracts under $200,000)
The Under 200K Program is a specialty bond program designed for contractors who have infrequent and/or small bond needs. This program is preferred by some contractors because of the minimal paperwork involved.
While there is a bit more paperwork involved in the Under 200K Program than in our smaller bond programs, it is much less than in a standard surety submission. In order to obtain approval for bonds in this program we need the following:
Two-Page Application (download)
Signed Indemnity Agreement (download)
Credit Check Authorization Form (download)
Bank Authorization Letter (download)
Last Fiscal Year-End Company Financial Statement
Current Company Financial Statement (less than six months old)
Current Personal Financial Statement on each Owner (download)
Copy of the Invitation to Bid or Contract with any required bond form
(You'll need Adobe Acrobat Reader to download the forms listed above.)
While this program is great for some contractors, it does not work for everyone. As stated above, this is designed for infrequent or small contracts. This program will not support any single contract over $200,000.
In addition, while there is no limit to the number of bonds a contractor can have at one time, the total amount of outstanding bond liability cannot exceed $200,000.
There is no charge for bid bonds in the Under 200K Program. The premium charge for performance/payment bonds is usually 2.5% of the contract price.