Performance & Payment Bonds in NY – New York Construction Bonds
Construction Bonds in New York Every construction job has a lot of moving parts, in the sense that it relies on a huge number of people with different skill sets. To ensure that all of these people carry out their duties properly and according to all applicable safety codes, construction bonds are usually required before a contractor or subcontractor can perform any work. There are several different types of construction bonds, including bid, performance, and payment bonds. Today we’re going to talk about the difference between a performance and payment bond NY, talk about who needs these bonds, and discuss why you still need insurance even if you have a surety bond. Everything You Need to Know About a Performance Bond in NY One common type of construction bond is a performance bond. As a contractor, you’ll often be required to obtain a performance bond from a surety company, and this acts as a promise to the client (the obligee) that you’ll complete the project as per the terms of the contract. This includes completing all the work, finishing on time, and coming in on budget. In a case where the contractor (the principal) doesn’t live up to those...
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