Provides financial assurance that the bid has been submitted in good faith and that the contractor intends to enter into a contract for the bid price and will provide the required performance and payment bonds.
A Performance Bond protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions. A payment bond guarantees that the contractor will pay certain subcontractors, laborers, and material suppliers associated with the project.
Regulatory bonds generally required by federal, state, or local municipalities in order to grant a license to engage in a particular business or the granting of a permit to exercise a particular privilege.
Various other bonds which may be required by law and as provided by statute, ordinance or regulation. Miscellaneous bonds can also include Court Bonds which are often filed to protect one litigant from an opposing litigant and must comply with statutory requirements.