What goes into determining the cost of a contract bond? Here is a basic introduction and some of the most common contract bonds:
- Bid bond鈥攕urety consents to provide performance and payment bonds, if the contract is awarded
- Performance bond鈥攇uarantees performance according to contract, bond terms
- Payment bond鈥攇uarantees payment according to contract, bond terms
- Maintenance bond鈥攇uarantees against defects in materials or workmanship for a stated period after completion
- Site or completion bond鈥攇uarantees of completion involving contractor financing