Contract Bonds
Guarantee the contractor (principal) will perform the work and pay their suppliers, subcontractors, and laborers.
Bid Bond
A bid bond is a guarantee that the bonding company will provide a performance bond to the principal, if the contractor is awarded the contract. The surety will underwrite bid bonds with the same caution as they do for performance bonds. In other words, the surety will not approve a bid bond, if they are not going to approve the performance bond.
Performance Bond
Guarantees the contractor will complete the project per the terms of the contract.
Subdivision Bond
Local authorities require a guarantee that the landowner completes mandatory public improvements that builders & developers make to their property.
Construction Bond
Is not a bond type, but a general term used to describe contract bonds.
Site Improvement Bond
Required to ensure public property will be restored upon the completion of a private project, in which the principal owns the land.
