Types of Construction Bonds

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Construction bonds may be required for contractors doing a project. This bond protects both the company and the client. There are various kinds of construction bonds:

  1. Bid Bonds

Bid bonds are used by the construction company when bidding for a construction project. If a contractor wants to bid on a project, they will have to submit a bid bond before placing the bid to the state or federal government.

  1. Performance Bonds

Once the contractor wins the bid, they may have to submit a performance bond to the state or federal government to reassure the client that the project will be completed in timely fashion and as promised.

  1. Payment Bond

The contractor may also be required to get a payment bond to assure that they will make payment to their hired sub-contractors and suppliers. This bond benefits the people working on the project.

  1. Maintenance bond

A maintenance bond may be required by the construction company to ensure that it will maintain the building after complete construction. It also ensures that the construction company will repair any defective work, if found.

You can get your construction bonds easily from a construction bond company offering online bonds instantly. You only need to make your bond payment online via debit/credit card and point out the state for which you are looking to get your bond.