How The Cost Of A Contract Bond Is Determined


What goes into determining the cost of a contract bond? Here is a basic introduction and some of the most common contract bonds:

  • Bid bond—surety consents to provide performance and payment bonds, if the contract is awarded
  • Performance bond—guarantees performance according to contract, bond terms
  • Payment bond—guarantees payment according to contract, bond terms
  • Maintenance bond—guarantees against defects in materials or workmanship for a stated period after completion
  • Site or completion bond—guarantees of completion involving contractor financing