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BONDS THAT
WE PROVIDE
Bid Bond: an
obligation undertaken by the bidder promising
that the bidder
will, if awarded the contract, enter into the
contract and
furnish the prescribed payment and performance
bond within a
specified period of time.
Performance Bond: an obligation intended to cover
the
contractor's performance of a particular
contract. It
guarantees payment - up to the penal sum - of
such things as
cost of completion or cost to correct
deficiencies, which are
the responsibility of the
contractor.
Payment Bond: an obligation intended to pay
laborers, suppliers and other contract-related
costs which the
contractor owes to third parties. The
benefit to a private
owner is that it provides a source of funds for
those who might
otherwise be able to enforce a lien against an
owner's property.
Maintenance Bond:
This bond guarantees
against defect
in workmanship and materials for a given period
of time. It may
also require the contractor to maintain the
quality of work over
such period of time as outlined in the
contract.
Bonds We
Do Not Provide
License/Permit Bonds:
This bond guarantees
that the
licensee will conform to the laws or statutes
relating to the
business they are engaged in. They help qualify
and enforce a
variety of city and state laws and
ordinances.
Tax
Bonds:
This bond guarantees
that sellers of
taxable commodities will comply with all
regulations and payment
of taxes on such products.
Subdivision Bonds:
This form of
Completion bond is
required of real estate developers or
contractors who subdivide
land into smaller divisions for improvements.
These bonds
guarantee that such improvements will be
completed before they
are sold. Normally, the bond is written in the
amount estimated
to pay for all such improvements.
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