The Infographic, “Types of Construction Bonds,” explains the different types of bonds used in construction projects across the US. In addition to identifying the different types, the infographic explains their purpose and why they are useful in the construction industry.
Construction Bond is a commonly used name for a type of surety bond that protects the obligee (the project owner) by ensuring the principal (the contractor) fulfills the terms of the contract. If the principal does not fulfill their obligations, the surety company will compensate the obligee according to the terms of the surety bond.
This Infographic categorizes the different types of construction Bonds into 3 types. The first type is bid bonds, which protects the obligee if the principal fails to honor their bid. The second type is performance bonds, which protect the obligee related to the terms of the project. The third type is payment bonds, which guarantee all payments to sub-contractors involved in a project. To learn more about construction bonds, refer to the infographic below.
The Infographic“How can I file a claim for a Construction Bond?” explains how to file a claim for a construction bond in the U.S. It also mentions the steps involved in sending a construction bond notice as well as the factors on which the claim is investigated before approval. Continue reading Infographic: The Process of Construction Bond Claims
Construction bonds are a general classification of surety bond used in the construction industry. It guarantees that the principal (the contractor) will complete a project according to the terms of their contract. If they do not for any reason, the surety company will have to pay the obligee (the project owner) for their losses. There are three primary types of construction bonds: Continue reading Which Construction Bond is Best for You
Contract bonds are a requirement for bidding on public and private projects across the United States. Similar to other types of surety bonds, constructions bonds are a three-party agreement between the contractor (who needs the bonding), the entity requiring the bond (the project owner or obligee), and the surety (that underwrites the bond). Continue reading How Construction Contract Bonds Work
In the construction industry, most development projects, especially government projects, require surety bonds for companies even for preliminary bids. In today’s competitive construction market, acquiring construction surety bonds can help an organization get ahead of competition. Continue reading How Important Are Construction Bonds?