Surety bonds are demanded by the local and the state government to allow businesses to carrying out various business activities. Its importance increases multifold when it comes to the construction business. The given Infographic describes the construction Contract surety bonds and it various aspects.
The purpose of construction contract Surety bond is to ensure that the project will be completed on time without any default and discrepancy. These bonds also look after the payment rights of the personnel associated with the project.
The Performance Bond, Bid Bond, Payment Bond and Maintenance Bonds are a few types of construction contract Surety bonds. When a contractor is bonded it gives a security to the project owner that the former is capable of fulfilling his duties. There are more chances of a bonded project being completed than a non-bonded one. If the contractor defaults the Surety reimburses the losses and gets the stranded project completed.
Please go through the given Infographic and know more about the construction contract Surety bonds.