There are forms of New Jersey surety bonds to cover many aspects of the lifecycle of a construction job. They protect a range of people and entities to ensure that a contract company performs to his contract and requirements, and insures for loss in the event he does not.
One of the first types of New Jersey surety bonds are bid bonds. This ensures that if the client has gone through the bid process and secured a legal bid from a construction contracting company, that the company will accept the contract if awarded the bid. Perhaps the most important and well-known type of surety are performance bonds. This is insurance against the contractor finishing the job, to within a particular time period, and according to the details of the contract. Payment bonds are a guarantee that the contractor will pay his suppliers for both materials and subcontracted or employed help. And finally, one of the least known, but perhaps as important as performance bonds are the maintenance bonds. The surety of these bonds lasts beyond the initial fulfillment of the contract and for a specific period of time, acts like a product guarantee in that the contractor will agree to provide facility repair and upkeep for the length of the bond. With this array of protection, those involved or benefiting from the construction project are protected from an array of mishap.