Payment Bond Application - Alliance for Contractors

ALLIANCE FOR CONTRACTORS

PAYMENT BOND APPLICATION

Labor and Material Payment Guarantee Application

PROJECT INFORMATION
Project Name:
Project Number:
Project Location:
State:
Contract Amount:
Contract Date:
Project Start Date:
Completion Date:
PRINCIPAL/CONTRACTOR INFORMATION
Company Name:
License Number:
Business Address:
City, State, ZIP:
Federal Tax ID:
Contact Person:
Phone Number:
OBLIGEE/OWNER INFORMATION
Owner/Entity Name:
Contact Person:
Address:
City, State, ZIP:
Phone Number:
SURETY COMPANY INFORMATION
Surety Company Name:
AM Best Rating:
NAIC Number:
State License Number:
BOND AMOUNT AND COVERAGE DETAILS
Payment Bond Amount:
Bond Premium:
Bond Term (months):
Effective Date:

Coverage Includes:

  • Labor costs and wages for all project personnel
  • Materials, supplies, and equipment furnished to the project
  • Subcontractor payments and associated costs
  • Equipment rental and lease payments
SUBCONTRACTOR PROTECTION PROVISIONS ALLIANCE INTEGRATED

This payment bond provides the following protections for subcontractors:

  • Guaranteed Payment: All labor and material costs will be paid according to contract terms
  • Claim Process: Streamlined claim filing and resolution procedures
  • Notice Requirements: Clear notification processes for payment issues
  • Legal Protection: Right to pursue claims against the surety for unpaid amounts
Estimated Number of Subcontractors:
Largest Subcontract Amount:
SUPPLIER PAYMENT ASSURANCE TERMS

Material Supplier Protection includes:

  • Payment for all materials delivered to the project site
  • Coverage for specially fabricated materials
  • Protection for equipment and tool suppliers
  • Utility and service provider payment assurance
☐ Extended Coverage: Includes off-site storage and pre-fabrication costs
☐ Rush Order Protection: Covers expedited delivery charges
☐ Change Order Materials: Automatic coverage for approved change order materials
LIEN PREVENTION CLAUSES LIEN WAIVER MANAGEMENT

This payment bond serves to prevent mechanics' liens by:

  • Providing alternative remedy through surety claims process
  • Requiring proper notice before lien filing rights are established
  • Establishing payment dispute resolution procedures
  • Creating clear payment timelines and requirements

Lien Waiver Requirements:

All parties receiving payment under this bond must provide appropriate lien waivers. Conditional waivers upon progress payments and unconditional waivers upon final payment are required. The Alliance system will track and manage all lien waiver documentation.

FINANCIAL SECURITY REQUIREMENTS
Contractor's Net Worth:
Working Capital:
Bank Name:
Credit Line Amount:
☐ Indemnity Agreement: Principal agrees to indemnify surety for all losses
☐ Collateral Security: Additional security provided (describe in attachments)
☐ Personal Guarantees: Individual guarantees from principals provided
ALLIANCE INTEGRATION FEATURES TECHNOLOGY ENHANCED

This payment bond application includes integration with Alliance systems for:

  • Real-Time Payment Tracking: Monitor all payments to subcontractors and suppliers
  • Automated Lien Waiver Management: Digital collection and tracking of all lien waivers
  • Compliance Alerts: Automatic notifications for payment deadlines and requirements
  • Financial Monitoring: Ongoing assessment of project financial health
  • Document Management: Centralized storage of all bond-related documentation
  • Claim Processing: Streamlined digital claim submission and tracking
Alliance Account Manager:
System Access Level:
REQUIRED ATTACHMENTS CHECKLIST
☐ Financial Statements: Most recent audited or reviewed financial statements
☐ Work in Progress Schedule: Current project commitments and backlog
☐ Bank References: Letters from banking institutions
☐ Construction Contract: Copy of the construction contract for this project
☐ Project Plans: Architectural plans and specifications
☐ Insurance Certificates: Current general liability and workers' compensation
☐ Trade References: List of recent material suppliers and subcontractors
☐ Completed Projects List: Similar projects completed in last 3 years
☐ Organizational Documents: Articles of incorporation, partnership agreements
☐ Professional Licenses: Copies of all relevant professional licenses

SIGNATURE SECTIONS

PRINCIPAL/CONTRACTOR

Date:

Signature of Authorized Representative

Print Name: Title:

SURETY COMPANY

Date:

Signature of Authorized Agent

Print Name: Title:

ALLIANCE FOR CONTRACTORS

Date:

Alliance Representative Signature

Print Name: Title:
TERMS AND CONDITIONS

General Terms:

  1. This payment bond guarantees payment to all claimants for labor and materials provided in connection with the construction contract.
  2. The bond amount represents the maximum liability of the surety under this bond.
  3. Claims must be filed within the time limits specified by applicable state law.
  4. The surety reserves the right to investigate all claims and may require supporting documentation.
  5. This bond shall remain in effect until final completion and acceptance of the work and final payment.

Alliance Integration Terms:

  1. All parties agree to participate in the Alliance payment tracking and verification system.
  2. Electronic lien waivers and payment confirmations are acceptable under this bond.
  3. The Alliance system will provide automated compliance monitoring and reporting.
  4. Digital claim submission through the Alliance platform is encouraged and supported.
COMPLIANCE VERIFICATION

The undersigned certify that:

☐ All information provided in this application is true and accurate
☐ The contractor is properly licensed in the jurisdiction where work will be performed
☐ All required insurance coverage is in place and current
☐ The contractor agrees to comply with all applicable labor and wage laws
☐ Subcontractor and supplier payment terms have been established and communicated
☐ The Alliance payment tracking system will be utilized throughout the project
☐ Regular lien waiver collection and management will be implemented
☐ All parties understand their rights and obligations under this payment bond

NOTICE: This payment bond application is subject to underwriting approval. The surety company reserves the right to request additional information, require modifications to terms, or decline to issue the bond. Upon approval and issuance, this bond provides important protections for all project stakeholders and helps ensure successful project completion with proper payment to all parties.

ALLIANCE FOR CONTRACTORS

Professional Bonding Solutions • Comprehensive Project Protection • Technology-Enhanced Services