A construction surety bond (also known as a contract surety bond) is a far reaching type of bond that oversees every aspect of all the bonds used for and in a particular construction job from the very beginning to the very end. These types of New Jersey surety bonds include several other bonds. Let’s take a look at a few of these bonds covered.
There is a bond known as the bid bond. These are principally used to ensure that the initial bidding price designated by the contractor will be fully honored and will not change over the course of the construction project. This is important because every party involved needs to know and adhere to the budgets and estimates set forth in order for every party to get treated fairly. These types of bonds are also used to ensure that the contractor who is chosen for the job will be given performance and payment type New Jersey surety bonds upon being awarded the contract.
The performance bond acts as a type of guarantee that the contractor involved will fully complete the specified project as outlined in the agreement. This agreement helps protect the owners from financial loss should the contractor be unable to complete their end of the agreement.
For more information on New Jersey surety bonds, contact your local agent or agency today!