BONDS THAT WE PROVIDE
Bid Bond: an obligation undertaken by the bidder promising that the bidder will, if
awarded the contract, enter into the contract and furnish the prescribed payment and performance bond within a specified period of time.
Performance Bond: an obligation intended to cover the contractor's performance of a
particular contract. It guarantees payment - up to the penal sum - of such things as cost of completion or cost to correct deficiencies, which are the responsibility of the contractor.
Payment Bond: an obligation intended to pay laborers, suppliers and other
contract-related costs which the contractor owes to third parties. The benefit to a private owner is that it provides a source of funds for those who might otherwise be able to enforce a lien against an owner's
Maintenance Bond: This bond guarantees
against defect in workmanship and materials for a given period of time. It may also require the contractor to maintain the quality of work over such period of time as outlined in the contract.
Bonds We Do Not Provide
License/Permit Bonds: This bond
guarantees that the licensee will conform to the laws or statutes relating to the business they are engaged in. They help qualify and enforce a variety of city and state laws and ordinances.
Tax Bonds: This bond guarantees that
sellers of taxable commodities will comply with all regulations and payment of taxes on such products.
Subdivision Bonds: This form of
Completion bond is required of real estate developers or contractors who subdivide land into smaller divisions for improvements. These bonds guarantee that such improvements will be completed before they are sold.
Normally, the bond is written in the amount estimated to pay for all such improvements.