Surety Bonds 101 - Contract Bonds

  • Contract Bonds make up the largest group of surety bond writings. They guarantee that the Principal will carry out the terms and conditions of a contract, generally of a construction nature. Contract bonds can be required on public works or private projects. The role of the Surety in this process is to provide assurance that the project will be completed according to the specifications, time and cost provisions contained in the underlying contract.
  • Bid, Performance and Payment, Subdivision, Completion, Design & Build, Supply, and Maintenance bonds are the primary types of contract bonds encountered.