Thank you for giving Northeast Surety the opportunity to consider your account for bonding.
You may use these materials to apply for bid, performance, maintenance, and supply bonds or provide your own information.
A contract bond is a three-party agreement, whereby the surety (insurance company), guarantees the obligee (recipient of the service) that the principal (contractor) will perform in accordance with the contract, and will pay their laborors, suppliers, and subcontractors. In essence, surety is a credit relationship. Because of this, applying for a bond is similar to applying for a bank loan.
Sufficient time is needed to carefully consider all aspects of your submission. The more information you proide with this sunmission, the sooner a decision can be made. Analysis can be very time consuming, particularly if all items are not included in your submission.
The following items are required to be considered for a bond program with our agency:
- Bid or final bond report fully completed.
- A current bank reference letter that provides evidence of borrowing capacity or established lines of credit including the terms.
- The last three (3) fiscal year end and current business financial statements for all companies needed. These statements should be prepared by an independent certified public accountant. The enclosed finanial statement requirement sheet outlines Northeast Surety's underwriting standards for statement preparation. Please provide the three (3) latest tax returns, if CPA statements have not been prepared.
- A properly completed General Agreement of Indemnity must be signed by the company, all owners (proprietors, partners, stockholders, members), and their spouses.
- A written history of the comnpany including any marketing information (brochures, business plan, or pre-qualification statements).
- A certificate of insurance identifying all coverages and naming Northeast Surety as the certificate holder.
- A job cost breakdown for the project that requires bonding.
- Three (3) job reference letters from owners of the largest contracts completed.
- A current personal financial statement of all owners is required.
- A copy of the pollution policy is required of environmental accounts.
- A contractor questionnaire application must be fully completed and signed.
- Resume of all owners and key employees of the organization.
- Three (3) supplier recommendation letters.
- A work-on-hand schedule of all (bonded and unbonded) uncompleted contracts including signed contracts and low bids.