TYPES OF CONSTRUCTION BONDS
Promises that if the contractor is awarded the job but refused to perform the work, the surety will pay the agreed penalty (generally, either the difference between the low defaulting bid and the next low bid, or a set penal sum, frequently 5 to 10 percent of the bid price).
Promises that the contractor will perform the work in accordance with the construction contract and related documents. If the contractor defaults, the bond may require the surety to step in and complete the work, or it may be a pure “indemnity” bond which requires the surety to reimburse the obligee for its damage.
Promises that if the suppliers and subcontractors are not paid for materials and labor furnished to the contractor, the surety will pay according to the terms of the subcontracts or purchase orders.
Contact one of our team members at M.E Wilson to find out more details on our Construction Bond capabilities and other Miscellaneous Bonds.