Chula Vista California Faithful Performance Bond
Learn about the important details of this surety bond and how to apply for one!
What is a Chula Vista California Faithful Performance Bond?
It is a requirement that must be submitted by a contractor along with a Construction Permit. This bond will serve as an assurance to the City of Chula Vista that the permittee will faithfully perform the construction of public improvement project that he or she has been awarded.
This includes complying with all the conditions that the construction permit covers. The activities that pertains to the construction of public improvement project must meet all development standards as well. The contractor is also required to comply with the ordinances, rules, regulations, statutes, and standards of the City of Chula Vista that governs the said construction project.
How does a Chula Vista California Faithful Performance Bond work?
A surety bond is a legal promise given by the principal and surety to the obligee. The principal is the contractor, the obligee is the City of Chula Vista, and the surety is the guarantor of the principal. The obligee is the party requiring the bond and will also be the bond’s beneficiary.
The surety will guarantee to the obligee that the contractor can be counted on to fulfill his or her contractual obligations. If along the way something happens and the contractor fails to perform the said obligations, the obligee will be eligible to file a bond claim.
A claim will not immediately be settled. The surety will first have to check its validity. Once it has been deemed valid, the surety will pay the amount required on behalf of the principal. After the settlement, the principal is obligated to reimburse the surety because of the default committed by the principal.
How much does a Chula Vista California Faithful Performance Bond cost?
The bond cost varies. This will depend on the principal’s credit score. Principals who have excellent credit scores will be eligible to pay as little as 1% to 2% of the total bond amount.
The bond amount for the construction of public improvement project will be determined by the City of Chula Vista.
How can I get a Chula Vista California Faithful Performance Bond?
The contractor must first apply for a Chula Vista California Faithful Performance Bond. If you’re ready to apply for one right now, you may easily do so HERE!
We will immediately process the application once we have received it. One of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
Once you have submitted all the required documents, our underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!