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The aggregate limit is the total amount of bonded work that the surety will back at one time. For example, a contractor may have a $1 million single-job limit, with up to $5 million aggregate. This means the contractor can have five $1 million bonds or ten $500,000 bonds active at one time.
How much is a performance guarantee? Performance bonds are a type of guarantee that ensures the contractor will pay a predetermined sum in case they fail to meet their obligations. Performance bonds usually depend on 10-12% and replace bid bond payments after award of contract.
To file a claim against a bond, a consumer should contact the contractor's surety company and include a detailed written description of the problem, a copy of the contract, and all other pertinent documents Page 2 and information.
A payment bond guarantees that the principal (e.g., the GC) will pay their lower tier subcontractors, laborers, and suppliers. Payment bonds are required on most public projects. They may also be required by private owners when desired. Under a GC's payment bond, the subcontractors and suppliers are the obligees.
Florida certificate of title bonds up to $6,000 cost just $100 and are issued instantly, while bonds between $6,000 and $50,000 are issued instantly at a rate of $15 per thousand dollars of coverage.

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A performance bond is not insurance. If there is a claim against the bond by the obligee, the surety will pay the amount of the bond to the obligee, but they will look to the principal to make good on the amount paid out. Performance bonds are only given to financially stable firms.
How Does a Payment Bond Work? Payment bonds are purchased by contractors, from a surety, who they pay a premium relative to the bond requirement. The bond then acts as a guarantee that if an issue arises, the parties involved in a project can be repaid for damages up to the required amount of the bond.
The Little Miller Act requires that the complaint asserting the claim against the payment bond be filed no later than the longer of: 1) one year after the claimant last performed work or furnished material to the project; or 2) one year from the date upon which final settlement is reached between the general contractor ...
A bond claim means the claimant is alleging you haven't fulfilled an obligation of yours that may be covered under the bond. However, genuine disputes occur in business transactions regarding the responsibilities between parties which is why surety companies investigate every claim.
In fact, when you get a quote for a surety bond, the quote is a one-time payment quote. This means you will only need to pay it one time (not every month). Bonds are quoted in terms.

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