Peoria, Arizona (PressExposure) October 13, 2009 -- The Viking Bond Service Company (Performancesuretybonds.com) has a uses a customized information system that was designed as a paperless surety bond management system. The resulting process creates customer value by making the applications easier to complete and the performance easier to track, which improves overall efficiency from start to finish.
Surety bonds are principally used by property and casualty insurance agents, attorneys, contractors and small business owners. It is beneficial for the general public to at least be aware of performance surety bonds since they may be required when hiring contractors or working with small businesses.
A surety bond is a three party guarantee among Principal, Surety Company and Obligee. The Principal is the party who is required to obtain a surety bond in order to obtain their license, obtain a permit, or satisfy a court requirement such as in probate or release of a lien. The Principal may also be a contractor who is bidding on or has been awarded a contract requiring a bid bond or performance bond. A Surety Company is an insurance company or division of an insurance company who backs the surety bond. The Obligee is usually a state or federal agency, requiring the Principal to obtain the surety bond covering the specified obligation. The surety bondâs primary function is to reduce the risk of a contract not going to full execution. This can be for obligation of payment, performance of work, or other requirements of the Obligee.
In order to ensure the full execution of a contract, Performance Surety Bonds are issued. Note: Performance Surety Bonds are required by law when contracting with government agencies. In addition, they are frequently required by general contractors when doing subcontracting. The reason for this is that they increase the likelihood that the Principal, a contractor, will carry out a contract. There are many requirements that a contractor must attain in order to obtain a performance surety bond. The track record of the contractor and their experience is taken into consideration as well as the available equipment and financial position. A performance surety bond ensures that the contract will be fulfilled in the event that the contractor is unable to meet their obligations.
In short, surety bonds are tools that ensure suppliers, labor, subcontractors are paid and that the work is completed. If the Principal fails, then either part or the entire surety bond covers the financial burden required to fulfill outstanding payments and ensure the work gets done in a timely fashion.
The Viking Bond Service Company protects the Obligee and Surety Company through systematic prequalification. As a result, the Principal has a greater likelihood of completing the contract. If the Principal is unable to complete the work then the surety bond or performance surety bond ensures contract completion. This is not simply one-sided value. By going through the process a Principal can gain insight into tangible areas that can be improved for increased customer value and a more sustainable business.
Surety bonds protect Obligees, which is increasingly valuable in the current economy. The Viking Bond Service makes the process simple and efficient with their paperless system. The Viking Bond Serviceâs seasoned professionals are able to give Principals a rough idea about the viability of a surety bond prior to the official starting of the process. Due in part to the efficient surety bond management system, Viking Bond Service has a high acceptance rate. They even have a program that can aid clients that would not qualify due to credit.
For additional information on surety bonds, contact Viking Bond Service at 1-888-2-SURETY or visit their website at: http://www.PerformanceSuretyBonds.com