(Performance and Labor & Material Bonds)
Used heavily in the construction industry. The Bond is a guarantee from a Surety, to a projects owner (Obligee) that a General Contractor (Principal) will adhere to the provisions of the contract. Several different categories of contract bonds include;
- Bid Bond: Guarantee that the contractor will enter into a contract if awarded the bid.
- Performance Bond: Guarantee that a contractor will perform the work as specified by the contract.
- Payment Bond: Guarantee that the contractor will pay for services (labor) and materials.
- Maintenance Bond: Guarantee that a contractor will provide facility repair and upkeep for a specified period of time.