There are a range of New Jersey surety bonds available for the various clients and other entities and organizations associated with a construction project. In a multi-million, high-visibility project, most of these will be procured in one form of another. Many of them are used even in smaller projects. It is important that a construction company as well as all interested parties be sure to procure the appropriate security bonds for important construction projects.
The first set of New Jersey surety bonds includes the wide range of contract surety bonds, which guarantee performance of the construction company to their contract. For commercial projects, there are a full set of commercial security bonds. One of the first groups of these is license and permit bonds, which guarantee compliance of the construction company with the range of government regulations. Court bonds include judicial bonds and fiduciary bonds, and pertain to any parts of the projects involvement with litigation, or individuals seeking remedy for some wrongdoing. In particular, fiduciary bonds relate to problems where property is entrusted to the care of a construction company, such as when a home is remodeled. Public official bonds guarantee the faithful and hones performance of those elected to positions of public trust. Fidelity bonds, otherwise known as employee dishonest coverage, protects against loss due to theft of a company’s own employees. These groups are the major categories of surety bonds used in the construction industry.