A Quick Guide to Surety Bond Terms
Once you have made the decision that a surety bond can help grow your business, knowing the basic construction surety bond terms can help to expedite the application process. And, it also helps to know which bond you will need for specific parts of the project. Yet, if looking for a more comprehensive description, our other blogs on the topic can help. What is a Bid Bond? A project owner may require this bond when bidding for a job. Usually needed in public construction projects, it ensures that the bidder is able to complete the job at their proposed bid. What is a Payment Bond? This bond protects those associated with the jobs. This may include other contractors, subcontractors, laborers and material suppliers. What is a Performance Bond? This ensures that the job will be completed as per the contractual stipulations. What is an Ancillary Bond? Not used as often as the previous bonds, this bond covers specifications not mentioned in the contract. For example, stylistic elements. What is a Subdivision Bond? A project owner may require this bond to cover such projects as replacing a sidewalk or sewer system. These five terms can help you to decide which...
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