There are many types of construction bonds, but primarily, a construction bond is required for the protection of the project owner.
Let's look at some of the details and there will be links so you can go deeper on the construction bond or bonds that you need for your situation.
These are the two most common types of construction bonds.
The bid bond covers/protects the project owner from a contractor who submits a low bid to win a project and then can't actually complete the project on budget.
The performance bond protects the project owner from a contractor who does not follow or deliver on the contract governing the project.
Payment bonds are not always required. A payment bond covers or protects the subcontracts from a general contractor who purposefully fails to pay a subcontractor for work that is successfully completed.
You can get pricing for your the construction surety bonds you need. Click the button below. You need to know the amount of your bond.
Talk to a bond specialist today. They will help you find the surety bond you need and get you the lowest possible price. 1-800-608-9950
A maintenance bond is a unique type of construction bond that protects the project owner after the project is complete. The project owner wants protection from the potential for poorly done work.
Another way of looking at a maintenance bond is like this, it ensures the contractor the did the work will maintain and repair it for a set number of years.
These are mostly used when doing projects commissions by government agencies.
This is another unique construction bond that is not always used. This bond is used, again for the protection of the project owner, from a general contractor who does not complete the project.
What makes this different from a performance bond is how it works. A percentage of the cost of the construction project is held in an account until the project is complete. This is called retainage.
The contractor can purchase a retainage surety bond to release all or a portion of those funds.
It's often used to manage project cashflows and project timelines.
Now you can see that construction surety bonds are used for the protection of the project owner in most cases. In some cases, like the payment bond, it protects other contractors.
You can get pricing for your the construction surety bonds you need. Click the button below. You need to know the amount of your bond.
Talk to a bond specialist today. They will help you find the surety bond you need and get you the lowest possible price. 1-800-608-9950
Learn what it means to be a bonded contractor along with the different types of contractor bonds. There are a lot to you'll have through your career.
What is a Maintenance Bond In Construction?
Understand the role of a maintenance bond in construction. Why it's required - how much it will cost - and why it could be difficult to get. Learn here!
What is a Retainage Bond In Construction?
Understand what a retainage bond is in construction. It might be the solution you need to get the cashflow and capital you need to complete your project.
Learn how a bid bond works for a construction project. Plus learn the other bonds you'll need to get approved for when you purchase your bid bond.
What is a Performance Bond in Construction
Learn the role or performance bonds in construction projects. Learn what the bond is, why it's required, and how you can purchase yours and save money!
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