At Carolina Indemnity Group, surety bonds are all we do. If you need to improve your existing bond program or simply need a one-time bond, you’ve come to the right place.
We have put together the most common bond types, their descriptions, and purpose.
Bid Bonds
Guarantees the owner of the project that if deemed the lowest responsible bidder, you will enter into the contract and provide a Performance & Payment bond.
Performance & Payment Bonds (P&P)
Guarantees every word in the contract. Also guarantees the contractor’s workmanship, and that he will pay both materialmen and suppliers.
Maintenance Bonds
Once the owner has accepted the job and punch list is over, the typical maintenance period is one year, guaranteed by the maintenance bond.
Subdivision Bonds
These bonds guarantee the local government that if the developer “goes bust”, he will leave the municipality with completed infrastructure. Also used to guarantee obligations after the project is converted such as ponds, erosion, etc. Common types of bonds CIG handles:
Completion Bonds
Often required by the lending source, this gives a 3rd party the right to make claim or “call” the bond.
Supply Bonds
Guarantees performance of a contract to provide delivery of supplies and/or materials.
Advance Payment Bonds
Guarantees you will repay or settle any cash advanced by the owner on a particular contract.
Reclamation Bonds
Guarantees you will restore the land or area on which you’re working to its original condition, usually to do with mining and the oil & gas business offshore.
Encroachment Bonds
If you’re working on private property, local government may require this to guarantee you will not negatively affect any adjacent public property.
Shoring Bonds
If you are digging or excavating land, local government may require a this to guarantee you will not negatively affect adjacent properties.
SC LLR Bond
In 2018 the South Carolina Legislature passed a law allowing general contractors and mechanical trades to post a surety bond in lieu of meeting financial statement requirements as outlined in SC Section 40-11-260. We routinely write these bonds.
South Carolina DOT (SCDOT)
Right of Way Performance
This bond guarantees the applicant for the DOT permit will comply with stipulations, requirements, & specs of the permit. The SCDOT no longer accepts letters of credit for ROW bonds. CIG will be happy to assist.
Plugging & Abandonment (P&A Bonds)
These surety bonds protect the public by guaranteeing that wells will be properly sealed and closed once no longer in use. They provide assurances for the cost of cleaning up abandoned wells if not properly plugged by the Principal.
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