Bonds. Surety bonds.
Secure your business with surety bonds.
A surety bond is a contract involving three parties:
Surety bonds consist of two types: Commercial and Contract surety bonds.
The second type of surety bond, Contract, is the form you are most likely to encounter in large construction projects, particularly when public entities are involved.
Contract surety bonds are commonly used in the construction industry to guarantee the performance of a contract. They include bid, performance and payment, and supply type obligations.
- A bid bond provides a way for project owners or contractors to pre-approve a bidder. The bond guarantees that if the low bidder wins the project, they will sign the contract and obtain the required performance and payment bonds.
- A performance and payment bond guarantees the low bidder will complete the contract and pay all subcontractors and vendors.
- A supply bond guarantees that a commodity will be provided as ordered, at a certain place and time, for an intended purpose.