Private Contractor Bond - City of New York, NY in New York

Brief Summary

When a New York City agency tells a private contractor to post a bond before work or a permit is released, this is the bond. The City sets the amount and the wording, and we issue the bond on that form so it is accepted the first time.

The New York City Private Contractor bond is posted by a private contractor in favor of the City of New York. It guarantees that the contractor will comply with the laws, rules and conditions that apply to its work and will pay what it owes the City if it does not. The amount is set by the City agency that requires the bond, so confirm the figure and the current bond form with that agency before the bond is issued.

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How to Apply for a Private Contractor Bond:

• Get the bond request from the requiring City agency, including the bond amount and any required bond form or wording.
• Have the contractor's legal business name and address exactly as the agency has them on file.
• Provide owner information for the surety's credit review, and financial statements if the amount calls for them.
• Approve the quoted premium and receive the executed bond naming the City of New York as obligee.
• File the original bond with the requiring City agency and keep a copy with your permit or approval records.

Detailed Information About the New York Private Contractor Bond:

Who posts this bond

A private contractor posts this bond when a City of New York agency requires one as a condition of approving work, issuing a permit or releasing an authorization. The contractor is the principal, the City of New York is the obligee, and the surety stands behind the contractor's obligations to the City.

What it guarantees

The bond protects the City, not the contractor. If the contractor fails to follow the laws, rules or conditions that govern the work, or does not pay fines, fees or costs the City is owed, the City can make a claim against the bond. The surety pays valid claims up to the bond amount and then recovers that money from the contractor.

Amount and bond language

The amount is set by the City agency requiring the bond and depends on the kind of work involved, so have the agency's letter, permit conditions or bond request in hand when you apply. City agencies prescribe their own bond wording and update it from time to time. NYC DOT, for example, has required all active permittees with bonds on file to submit a new bond with updated language. A bond written on the wrong or outdated form can be sent back, so get the current wording from the agency first.

Premium

The premium is set by the surety based on the bond amount, the owner's personal credit and, for larger amounts, the contractor's financial statements and work history. Confirm the current form and filing steps with the requiring City agency before the bond is issued.

Eligibility and Requirements for a New York Private Contractor Bond:

• City of New York named as obligee.
• Bond amount as set by the requiring City agency.
• Bond written on the agency's current form and wording.
• Contractor name on the bond matching the agency's records exactly.
• Bond kept in force for as long as the agency requires.

New York Private Contractor Bond FAQs:

Official and Additional Resources for the New York Private Contractor Bond: