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Contract Bonds

Contract Bond Types:

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 contractor bonding.

Maintenance Bond - A contractor bond in force following a performance bond.

Payment Bond - Assures that the suppliers, laborers, and subcontractors will be paid if the contractor defaults.

Performance Bond - A contract bond to guarantee the completion of a 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.

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