Construction Bonds
A construction contract bond is basically an undertaking whereby the guarantor agrees to indemnify the beneficiary, to a designated amount, against loss or damage sustained by the beneficiary through the failure of the principal to perform a building contract or execute some other construction work
Types Of Construction Bonds
Performance Bonds
This bond covers against defective workmanship and ensures work is done to specifications and standards within the required time.
Advance Payment Bonds
An Advance Payment Bond is required to guard against the misuse of money that is paid in advance to contractors for the purchase of materials.
Bid Bonds
A bid bond determines the seriousness of the contractor. It is an assurance by the contractors that the tender procedures will be followed.
Retention Bonds
A retention bond enables the retention monies to be released to the contractor, at the same time guaranteeing the employer that in the event of default by the contractor, such moneys will be paid to the employer.
Maintenance Bonds
A maintenance bond covers costs of any defects that are realized after completion of works.