What is a Contract Bond?
What is a Contract Bond? A contract bond, also known as a construction bond, is a type of surety bond used in the construction industry to ensure the successful completion of a construction project according to the terms and conditions specified in a contract. These bonds provide financial protection for project owners (obligees) by guaranteeing that the contractor (principal) will fulfill their contractual obligations. There are three primary types of contract bonds: Bid Bonds: Issued during the bidding process, bid bonds provide...