Construction Contract Surety Bonds provide financial security and construction assurance on building and construction projects by guaranteeing the project owner (Obligee) that the contractor (Principal) will perform the work and pay certain subcontractors, laborers, and material suppliers accordingly.
Bid Bonds provide financial assurance that the bid has been submitted in good faith, and that the contractor intends to enter into the contract at the price bid and provide the required performance and payment bonds.
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Payment Bonds guarantee that the contractor will pay the subcontractors, laborers, and material suppliers associated with the project.
Performance Bonds, on the other hand, protect the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.
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Warranty, or Maintenance Bonds, normally guarantee against defective workmanship or materials for a specified period.
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Development or Subdivision Bonds provide a guarantee to a city, county, or state that the principal will finance and construct certain improvements such as streets, sidewalks, curbs, gutters, sewer, and drainage systems.
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