Bank Guarantee Cost

Bank Guarantee Cost Chart

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1. Bank Guarantee Cost The cost of a bank guarantee is typically three percent (3%) of the underlying job. Extra Information
2. How to Get One However, these bonds are very difficult to get as the surety will require collateral in the amount of the bond being written. Extra Information

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Bond Claim

Bond Claim Chart

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1. Bond Claim A bond claim is where one party (such as the Obligee, a subcontractor or material vendor) makes a claim upon the job bond. Extra Information
2. Validity of Claim The claim is then processed by the surety to see if the claim was timely made and that the dispute is valid. If the claim is valid, the surety will then pay, or get another contractor to finish the job, and then look to the Obligor for recompense. Extra Information

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Surety Deposit

Surety Deposit Chart

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1. Surety Deposit Some surety bond companies will ask for a deposit in order to alleviate their out-of-pocket costs when writing a bond. Extra Information
2. Performance Bond Deposit In a performance bond situation, some of the bonds that are written are extremely large. Further, they can be needed very quickly for certain jobs. So, some companies ask for a deposit of 5-10% of the cost in order to alleviate the out-of-pocket costs. Extra Information

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What is a Bonding Company

What is a Bonding Company Chart

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1. Bonding Company A bonding company is simply another name for a surety company. Extra Information
2. What is it? In the U.S., most bond companies (i.e., surety companies) are divisions of large insurance companies, such as AIG, Zurich or Liberty. Extra Information

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