Contract surety bonds provide financial security and construction assurance on building and construction projects. They guarantee to the project owner (obligee) that the contractor (principal) is qualified to perform the work and will pay certain subcontractors, laborers and material suppliers. If the contractor defaults, the surety guarantees that the obligations will be met.
- Bid bond-assures the bid has been submitted in good faith. It ensures the contractor will enter the contract at that price and provide the required performance and payment bonds.
- Performance bond-Protects the project owner from financial loss in the event the contractor doesn’t fulfill the contract in accordance with terms and conditions
- Payment bond-Guarantees the contractor will pay certain subcontractors, material suppliers, and laborers.
- Maintenance bond-Protects against defective work and materials for a specified period
- Subdivision bond-guarantees the developer will complete required subdivision improvements such as sidewalks, streets and sewers.
Commercial Surety bonds
- Permit bond- Bonds that are required to become licensed in a regulated industry. They’re usually required for laundromats, beauty salons, and liquor stores.
- Court bond- Bond that guarantees a party will abide by a court order
- Fidelity bond- Bond that protects against employee theft
- Non Construction Performance bond-Bond that guarantees any non construction based contracts including service contracts, supply contracts, supply and install,