Form Au-766 - Guarantee Bond Form (Page 2 of 2) in pdf

General Instructions

Completion of the contract means the time when the nonresident

contractor makes the final periodic billing for the contract. The final

A nonresident contractor and a surety company licensed to do

periodic billing may be due before payment of any retainage

business in Connecticut must execute Form AU-766, Guarantee

becomes due. If a change order is made after the final periodic

Bond, to post a guarantee bond with the Department of Revenue

billing for the original contract, the change order is complete when

Services (DRS) for a specific project in Connecticut. A power of

the nonresident contractor bills for the change order.

attorney for the person signing the bond on behalf of the surety

company must be attached to the bond, carry the corporate seal of

Residential real property means real property used exclusively for

the surety company, and bear the same date as the execution date

residential purposes and consisting of three or fewer dwelling units

of the bond.

in one of which the owner or tenant resides.

A nonresident contractor has the option of filing a guarantee bond or

Any bond that bears an erasure or alteration, regardless of its

a cash bond instead of the customer making a deposit with DRS

nature, must have the change authenticated by a notation in the

under Conn. Gen. Stat. §12-430(7)(B). Under this option, the

margin. The notation should describe the correction and be

nonresident contractor has 120 days from the commencement of

signed in the name of the surety company by the officer who

the contract or 30 days after the completion of the contract, whichever

executed the bond and must bear the corporate seal of the surety

is earlier, to file a guarantee bond or a cash bond (Form AU-72) with

company.

DRS.

Specific Instructions

Return Form AU-766 to: Department of Revenue Services

Part I: Enter the name and complete address of the nonresident

Discovery Unit

contractor furnishing the bond. Include the nonresident

25 Sigourney Street

contractor’s Connecticut tax registration number. The name

Hartford CT 06106-5032

and address of the nonresident contractor appearing on

See Special Notice 2005(12), Nonresident Contractor Bonds and

the bond must agree with the name and address on Form

Deposits, for more information.

REG-1, Business Taxes Registration Application, filed with

DRS. (If the information originally provided on Form REG-1

Nonresident contractor means a contractor who does not maintain

is now incorrect, you must notify the DRS Registration Unit

a regular place of business in Connecticut.

in writing of the correct information.) If the nonresident

Regular place of business means:

contractor is a corporation, the corporate name appearing

• Any bona fide office, factory, warehouse, or other space in

on the bond must be the same shown in the records of the

Office of the Secretary of State, or similar agency of another

Connecticut at which a contractor is doing business in its own

state if the nonresident contractor is not a Connecticut

name in a regular and systematic manner; and

• Which place is continuously maintained, occupied, and used by

corporation.

the contractor in carrying on its business through its employees

Part II: Enter the name and complete address of the person doing

regularly in attendance to carry on the contractor’s business in

business with the nonresident contractor. If the nonresident

the contractor’s own name.

contractor is the general contractor, enter the name and

address of the owner or tenant of the property who has

A regular place of business does not include:

entered the contract. If the nonresident contractor is a

• A place of business for a statutory agent for service of process or

subcontractor, enter the name and address of the general

a temporary office whether or not it is located at the site of

contractor.

construction;

Enter the Connecticut tax registration number of the person

• Locations used by the contractor only for the duration of the

doing business with the nonresident contractor. If the

contract, such as short-term leased offices, warehouses, storage

person doing business with the nonresident contractor does

facilities, or facilities that do not have full time staff with regular

not have a Connecticut tax registration number, enter that

business hours; or

person’s Federal Employer Identification Number or Social

• An office maintained, occupied, and used by a person affiliated

Security Number.

with a contractor.

Part III: Enter the name and complete address of the surety company

Contract price means the total contract price, including deposits,

that guarantees this bond. Include the bond number.

amounts held as retainage, costs for any change orders, or charges

for add-ons.

Part IV: Check the box if the deposit is for a change order occurring

after the bond for the initial contract was furnished to DRS.

Person doing business with a nonresident contractor means any

Enter the name of the project and the complete address

person who makes payments of the contract price to a nonresident

including the street address and the city or town where the

contractor, and includes, but is not limited to property owners,

project is physically located.

governmental, charitable or religious entities, and resident or

nonresident general contractors or subcontractors. An owner or

Enter the commencement date of this project or change order.

tenant of residential real property is not a person doing business

Enter the date by which the nonresident contractor is

with a nonresident contractor and is not required to comply with the

expected to complete work on this project or change order.

provisions of Conn. Gen. Stat. §12-430(7). However, the nonresident

contractor doing business with such an owner or tenant must comply

Enter, in words and figures, the total amount to be paid to

with the bond requirements under Conn. Gen. Stat. §12-430(7)(F).

the nonresident contractor under the contract. Indicate if

this amount is an estimate.

Commencement of the contract means the time when the

nonresident contractor signs the contract, but, in any event, occurs

Declarations: An authorized representative for the nonresident

no later than when the work under the contract actually starts. If a

contractor and the surety company must sign and date the

change order is made after the commencement of the original

declaration on Form AU-766. The name of the nonresident contractor

contract, the change order commences when it is signed by the

and the surety company must be exactly as it appears on the bond.

nonresident contractor, but, in any event, occurs no later than when

The corporate seal of the surety company must be affixed by its

the work under the change order actually starts.

signature on Form AU-766.

Form AU-766(Back) (Rev. 10/05)

Form Au-766 - Guarantee Bond Form Page 2

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