Surety bonds help you get the job completed on your construction project. By insuring with these several types of bonds, you can be sure that everyone’s interests are protected and all subcontractors get paid. There is a type of bond for every stage of the construction process.
In the project bidding phase a bid bond from a contractor will assure you that their bid is in good faith. It guarantees that the contractor will abide by the bid amount and will also take out additional surety bonding for the successful continuation of the project.
In the event that the contractor fails to follow or complete the terms and conditions of the construction contract, a Performance bond protects all owners. A bond that is normally taken out at the same time as a performance bond is the labor and materials bond. A labor and materials payment bond protects all subcontractors, suppliers, and workers. It is a binding bonded pledge that they will get paid for their contributions to the project.
At the conclusion of the project, a maintenance bond can be secured as a guarantee against construction defects. It is set at an agreed upon time period after all construction is done. At every phase of a project, insurance in the form of surety bonds give peace of mind to all involved.