Commercial Surety Bonds: Contract Bonds
- Bid Bond - A guarantee that the bonding company will provide a performance bond if the contractor is awarded the job.
- Construction Bond - Is not a bond type, but a general term used to describe contract bonds.
- Maintenance Bond
- Payment Bond - Assures that the suppliers, laborers, and subcontractors will be paid if the contractor defaults.
- Performance Bond - Guarantees the contractor will complete the project per the terms of the contract.
- 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.
- Subdivision Bond - Local authorities require a guarantee that the landowner completes mandatory public improvements that builders & developers make to their property.
- Supply Bond - Required by the project owner, state or federal law to secure payments to suppliers.
Special Note: This summary outlines in general terms the coverages afforded under some policies. Examine the policy carefully for any exclusions, limitations, or any other terms or conditions that may specifically affect coverage. The terms and conditions of the policy prevail.