Contract Bond Rider - Alliance for Contractors
Empowering Contractors with Enterprise-Level Solutions

Contract Bond Rider

Document Type Bond Modification and Amendment Documentation
Rider Number
Original Bond Number
Contract Project
Effective Date
Surety Company

I. Bond Modification Types and Coverage Changes

This Contract Bond Rider serves to modify, amend, or extend the terms of the original bond agreement referenced above. The following modification types are available under this rider:

Modification Type Description Surety Approval Required Applicable
Coverage Amount Increase Increase in bond penalty amount due to contract value changes Yes
Coverage Amount Decrease Reduction in bond penalty amount with partial release Yes
Term Extension Extension of bond term beyond original expiration date Yes
Scope Modification Changes to work scope covered under the bond Yes
Principal Change Addition or removal of principals on the bond Yes
Administrative Changes Non-material changes (address, contact information) No

Coverage Adjustment Details

Original Bond Amount: $

Revised Bond Amount: $

Net Change: $

Reason for Change:

II. Term Extension Procedures

When contract completion extends beyond the original bond term, this rider provides for systematic term extension with proper surety coordination.

Extension Requirements

  1. Written request submitted to Alliance and Surety at least 30 days prior to current expiration
  2. Updated project schedule and completion timeline
  3. Current financial statements if extension exceeds 12 months
  4. Explanation of circumstances necessitating extension
  5. Confirmation of continued contract validity

Original Bond Term: to

Extended Bond Term: to

Extension Period: days/months

III. Contract Adjustment Protocols

Contract modifications requiring bond adjustments must follow established protocols to ensure continuous coverage and compliance.

Step 1: Contract Change Order Received - Alliance reviews change order documentation and determines bond impact within 2 business days.
Step 2: Bond Impact Assessment - Evaluation of coverage amount, term, and scope modifications required to maintain adequate protection.
Step 3: Surety Consultation - Coordination with surety company to obtain approval for material changes and premium adjustments.
Step 4: Rider Preparation - Drafting of bond rider documentation with all necessary modifications and legal compliance.
Step 5: Execution and Filing - Completion of rider execution process and filing with appropriate project stakeholders.

IV. Surety Approval Requirements

Material modifications to bond terms require formal surety approval. The following matrix outlines approval requirements:

Automatic Approval (No Surety Consent Required)

  • Administrative corrections (addresses, contact information)
  • Coverage reductions of 10% or less
  • Term extensions of 30 days or less for completion

Standard Approval Process (5-10 Business Days)

  • Coverage increases up to 25% of original amount
  • Term extensions up to 6 months
  • Minor scope modifications within original contract parameters

Enhanced Review Process (10-15 Business Days)

  • Coverage increases exceeding 25% of original amount
  • Term extensions exceeding 6 months
  • Material scope changes or additional contract work
  • Principal additions or substitutions

V. Rider Execution Process

This section outlines the formal execution requirements for bond rider implementation and ensures proper legal effect.

Required Documentation

  1. Completed Bond Rider form with all modifications clearly stated
  2. Supporting contract documentation (change orders, amendments)
  3. Surety approval letter or consent (when required)
  4. Updated project schedule and financial information
  5. Premium adjustment calculation and payment

Execution Authority

This rider must be executed by authorized representatives of all parties:

  • Principal (Contractor): Authorized officer or designated representative
  • Surety Company: Licensed attorney-in-fact or authorized agent
  • Alliance Representative: Bond department manager or designated authority

VI. Change Management Workflow

Alliance provides comprehensive change management coordination to ensure seamless bond modifications and stakeholder communication.

Workflow Stage Responsible Party Timeline Deliverables
Change Request Initiation Contractor/Project Owner Day 1 Formal change request with supporting documentation
Initial Assessment Alliance Bond Team Days 1-2 Impact analysis and preliminary rider requirements
Surety Coordination Alliance/Surety Days 3-7 Surety approval and premium determination
Documentation Preparation Alliance Bond Team Days 8-10 Draft rider and execution package
Review and Execution All Parties Days 11-15 Final rider execution and distribution

VII. Compliance Tracking

Maintaining compliance throughout the bond modification process is essential for continued coverage effectiveness.

Compliance Checklist

All contract modifications properly documented and filed

Bond coverage amounts adequate for revised contract value

Bond term sufficient for revised completion schedule

Surety approvals obtained for all material modifications

Premium adjustments calculated and payment arranged

All parties properly notified of rider execution

Project stakeholders provided with updated bond documentation

Internal records updated with modification details

Ongoing Monitoring Requirements

  • Monthly project progress reviews for extended terms
  • Quarterly financial monitoring for increased coverage amounts
  • Contract completion milestone tracking
  • Surety relationship maintenance and communication

VIII. Terms and Conditions

This Bond Rider is subject to all terms and conditions of the original bond agreement except as specifically modified herein. The following additional provisions apply:

  1. Effective Date: This rider becomes effective upon execution by all parties and payment of any required additional premium.
  2. Integration: This rider forms an integral part of the original bond and shall be read together therewith.
  3. Precedence: In case of conflict between this rider and the original bond, the terms of this rider shall control.
  4. Liability: The surety's total liability shall not exceed the revised bond penalty amount as specified herein.
  5. Cancellation: This rider may not be cancelled independently of the original bond agreement.

IX. Execution

By executing this Bond Rider, all parties acknowledge they have read, understood, and agree to be bound by its terms and conditions.

PRINCIPAL (CONTRACTOR)
Company:
Authorized Signature

Print Name:
Title:
Date:
SURETY COMPANY
Company:
Attorney-in-Fact Signature

Print Name:
Title:
Date:
ALLIANCE FOR CONTRACTORS
Authorized Representative

Print Name:
Title:
Date:
WITNESS/NOTARY
Witness Signature

Print Name:
Date:
[Notary Seal]
LEGAL DISCLAIMER AND IMPORTANT NOTICES

This Contract Bond Rider template is provided by Alliance for Contractors as a general framework for bond modifications and amendments. This document should be reviewed by qualified legal counsel before execution. Alliance for Contractors makes no warranty as to the legal sufficiency of this form for any particular purpose or jurisdiction.

SURETY REQUIREMENTS: All material bond modifications require express written consent from the surety company. Modifications made without proper surety approval may void bond coverage.

PREMIUM ADJUSTMENTS: Bond modifications may result in additional premium charges or return premium credits. All premium adjustments must be resolved prior to rider effectiveness.

COMPLIANCE OBLIGATIONS: Contractors remain responsible for compliance with all contract terms, applicable laws, and regulations. Bond coverage does not relieve the principal of performance obligations.

ALLIANCE SERVICES: Alliance for Contractors provides comprehensive bond management services including modification coordination, surety relationship management, and compliance tracking. Contact your Alliance representative for assistance with bond modifications and contract changes.

EMERGENCY CONTACT: For urgent bond matters requiring immediate attention, contact Alliance Bond Services at [Contact Information] or your designated account manager.

Document Version: 2024.1 | Last Updated: [Date] | Alliance for Contractors - Bond Services Division