Once you have made the decision to get bonded and grow your construction business, it is essential for you to know the basics of construction surety bonds. Only when you have a complete knowledge of surety bonds will you be able to make out the requirements of the bonds needed for each part of any project. This Florida surety bond company recommends having a complete awareness of the basics of surety bonds:
Bid Bond: A bid bond is required by the project owner to bid on any construction project. A bidder is eligible to bid on public construction projects only when he/she has produced a bid bond. The bid bond ensures that the bidder will enter into a contract to complete the project at the agreed price.
Performance Bond: This bond ensures that the contractor completes the project as per the terms and condition of the contract.
Payment Bond: A payment bond protects the job from liens from people associated with the project. This bond ensures that the sub contractor, material suppliers, etc. get their payment and ensure a lien-free project.
Subdivision bond: This bond may be needed by the project owner to replace sidewalks or sewer systems.
If you know about the above bonds well, you can easily find what types your business requires.