Contractor Bonds

The following may be required in connection with a contract:

  • BID BOND – Is a Surety bond filed by contractors, guaranteeing that in the event a bid is accepted, the successful contractor a Performance Bond.
  • PERFORMACE BOND – Is a Surety Bond (Contractors Bond) guaranteeing the contractor will faithfully perform contractual obligations to the Obligee.
  • LARBOR and MATERIAL BOND – A payment bond that protects the owner contracting for work against liens from subcontractors or laborers who are not paid for their services, and/or materials by the general contractor.
  • COMPLETION BOND – A surety bond guaranteeing that borrowed money will be used toward completion of a project.
  • SUPPLY BOND – A surety bond whereby a supplier (Principal) guarantees to perform under a contract to supply goods or materials to the contractor (obligee) in accordance with the terms of the contract.