Provides financial assurance that the bid has been submitted in good faith. A bid bond assures that the contractor will enter into the contract at the bid price. It also assures that the contractor will be able to obtain the required performance/payments bonds.
Performance & Payment Bonds
Guarantees the contractor will complete the project per the terms of the contract.
Guarantees defective workmanship and materials for a stated period of time.
Commercial Surety Bonds
Three party agreements in which the issuer of the bond (the surety) joins with the second party (the principal/contractor) in guaranteeing to the third party (the obligee) the fulfillment of an obligation on the part of the principal.