Three Year Maintenance Term

[Bond Magician]

Can you issue a bid bond for a three year term? Western Surety has already declined this due to the three year term. Why would the term be an issue?

[Surety Queen]

Originally Posted by Bond Magician

Can you issue a bid bond for a three year term? Western Surety has already declined this due to the three year term. Why would the term be an issue?

Yes - we do have a couple of companies who will consider multi year contracts. It's not unusual though for a Surety to prefer not entering into a bonded situation for multi-years. When a performance bond is issued, unless otherwise stated, it covers the entire contract - regardless of the length. Surety will want the option to get off the bond in the event that your credit takes a dive.