Contract Bonds

Contract Bonds are bonds that are typically purchased by construction contractors to ensure their performance under various construction contracts. Should the contractor fail to perform under the construction contract, the surety bond is there to provide performance guarantees to the other contracting party. Contract Bonds are typically comprised of performance bonds and/or payment bonds.

Performance Bonds
A performance bond is a financial guarantee to one party in a contract that the other party will meet its obligations per the contract. If the party providing the service doesn’t perform per the agreement, the bond is paid out to the other party to cover their costs or damages.

Payment Bonds
A payment bond is a surety bond that guarantees that the subcontractors, suppliers and/or vendors will be paid according to their agreed upon terms. They are typically used in public projects or when a contractor wants to ensure his vendors and subcontractors stand by their agreements and pay their workers. Most of the time, payment bonds are used in conjunction with performance bonds.

contract bonds

Get a Contract Bond

Contact us to get a performance bond by calling (855) 938-1600, emailing us at [email protected] or send us a message below.

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