Posted by Todd Taylor, AFSB, CPCU, for OldRepublicSurety
What goes into determining the cost of a contract bond? Here is a basic introduction.
Common Contract Bonds
These are some of the most common contract bonds:
- Bid bond—surety consents to provide performance and payment bonds, if the contract is awarded
- Performance bond—guarantees performance according to contract, bond terms
- Payment bond—guarantees payment according to contract, bond terms
- Maintenance bond—guarantees against defects in materials or workmanship for a stated period after completion
- Site or completion bond—guarantees of completion involving contractor financing