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Old 01-25-2005, 06:44 PM
evans619 evans619 is offline
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Join Date: Jan 2005
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Default Type of construction affects rate

The rate used by the surety may vary by the type of construction. There are different classifications for different types of work. As an example, the industry has lower rates for supply contracts and certain service type contracts. Normally, general construction and trades are classified as Class B and take on a higher tier of rates, there are lower tiered rates for work classified as A-1 or A by the surety industry. A good surety producer can give you the normal range for your type of work. The actual rate you get in your construction category is dependant on your financial statement quality, your financial strength and how much of a user of bonds you are. The industry does not generally give their best rate to an infrequent user of bonds.
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