Contract Surety – What is a Contract Surety Bond?

Bonds that the government or an owner of a construction project may require a contractor to obtain.

There are three types of contract surety bonds:

Bid bond – Affords protection to a project owner (obligee) in the event a successful bidder will not enter a contract and will not provide the required surety bonds or other security

Performance bond – Provides protection to the obligee if the contractor defaults on its obligations under the bonded contract

Payment bond – Guarantees that the contractor will pay subcontractor, labor and material bills associated with the construction project.

 

See Also:

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