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Pinnacle Surety & Insurance Services
151 Kalmus Drive Suite A-201
Costa Mesa, California 92626

Contract Bonds

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CONTRACT BONDS

A Professional Surety Bond Agency.

BID, PAYMENT & PERFORMANCE
MATERIAL/SUPPLY, MECHANIC'S LIENS AND STOP NOTICE BONDS.

Performance & Bid Bond Requirements

Contract Bonds

Bid Bonds
A bid bond is provided to the Obligee/Owner from the contractor in order to give assurance that if the contractor is the successful bidder the contractor can provide a payment and/or performance bond. If the contractor is the successful bidder and decides not enter into a contract, therefore failing to provide a payment and performance bond, then the owner can make a claim on the bid bond for the difference between the contractors bid and the lowest next bid or the amount of the bid bond (5% to 20% of the bid amount) whichever is less. In some cases the owner can claim the full amount of the bid bond even if it’s more then the bid spread.

Performance Bonds
A bond which promises that the terms of a contract, or some of them, will be performed by the Principal/Contractor.

Payment Bonds
A bond which promises to pay some or all of the persons who provide material, labor, or services for prosecution of a contract.

Performance and Bid Bonds - Submission Requirements

1. Request for Bid or Performance Bond (form attached).

2. Contractor's Questionnaire (form attached).

3. Business Financial Statements for the past three (3) years. (If last Fiscal Year is more than six (6) months old, then please provide a current interim financial statement).

4. Personal financial statements of each owner (form attached)

5. Current Work on Hand Schedule.

6. Business Bank Reference (form attached)

7. Resume of all key personnel (form attached)

8. Copy of Contractors State License

9. Copy of General Liability Insurance.

10. Copy of Articles of Incorporation

11. Copy of Living Trust or Family Trust if applicable.