What is an e-Bond?
An e-Bond, or electronic bond, is a digital surety bond that protects purchasers financially from a supplier being unable or unwilling to complete their contract or awarded project. This digital file is occasionally requested by Purchasing Organizations or Project Owners as part of their submission package.
E-bonds are currently issued by third parties, and we encourage all e-bond and surety clients to carefully research the surety provider they choose. Bonfire is proud to partner with Mobile Bonds, a service company that enables customers to create and process digital surety bonds online at a low cost.
How can I utilize e-Bonds in Bonfire?
Bonfire allows purchasers to collect e-bonds in an easy, efficient, and entirely compliant way. To collect an e-Bond on your Bonfire project, follow the 3 steps:
- Set up a requested information slot to receive an e-Bond with each vendor’s submission. See an example below:
- If you choose to move forward with a selected vendor, you can easily verify the e-Bond online using a service such as Mobile Bonds.
- Once the e-Bond has been verified, continue your procurement process as normal. You may choose to download the Signature Audit Report or other e-Bond confirmation notices for your records.
Additionally, you may want to set-up pass/fail criteria in your project to represent the validity of each e-Bond. See example below:
Can I still receive a physical copy of a bond?
If required, you can run your project through Bonfire as outlined, and have the supplier mail a physical copy of the bond to your offices, in addition to receiving the digital copy.
For additional information, please watch our educational webinar: "Managing eBonding and construction opportunities in Bonfire"