Performance Bonds – 5 Tips on “How To Get Approved” and Performance Bond Advantages and Basics
Contractors are required to be approved for a surety bond facility in order to bid on and to complete most public or government jobs.
Types of Contract Bonds:
1) Construction Bonds guarantee that a construction company will complete a project as promised.
2) Bid Bonds guarantee that the contractor will agree to complete the project at the bid price and are able to meet other bonding required, if the bid is accepted.
3) Performance Bonds guarantee that the contractor will perform the contract as agreed.
4) Payment Bonds guarantee that the subcontractors, labourers and suppliers, will be paid, as agreed.
Other:
Maintenance Bonds, which guarantee against defects in materials or workmanship
License or Permit Bonds, which are required to get a license or permit under state/province or local law.
Labour and Material Bonds, which guarantee payment of labour and to material suppliers.
Advantages of Bonding for Contractors
Performance Bonds allow … Read More