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Bid Bond

Is a bond which provides financial assurance that the bid has been submitted in good faith, that a contractor will enter into a contract at the amount bid, and will provide the appropriate performance and payment bonds. These bonds are used by obligees (project owners) to pre-qualify contractors submitting proposals.

Application

Performance Bond

A performance bond guarantees performance of the terms of a contract. These bonds frequently incorporate payment bonds (labor and materials) and maintenance bonds. Bonding ultimately aims to protect the project owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.

Application

Payment Bond

A payment bond covers payment of subcontractors, laborers, and materials suppliers associated with the project. Payment bonds are issued for the protection of those supplying labor or materials to a particular bonded project.

Application

Maintenance Bond

A maintenance bond guarantee upkeep (maintenance) of the completed project for a specified period of time after completion. These bonds protection from defective workmanship and/or materials.

Qualifying for and obtaining surety bonds is like applying for a significant unsecured line of credit. If you have never accomplished bonded work or participated in preparing a contract surety bond submission, we really, REAAAAALLY recommend that you read this publication of the Associated General Contractors of America and National Association of Surety Bond Producers.

Application