In the surety market, the varying market conditions have led to many changes and adaptations. If you are in contract with the surety bond then it will confirm that the contractor will execute the work also pay precise subcontractors, labors and other workers. There are three types of contract surety bonds and these are:
Bid Bond: This bond assures that the bid has been proposed in a good manner and the contractor will get the project at the bid price and provides the requisite performance and payment bond.
Performance Bond: In this bond, if the work does not go according to the contract mean that the contractor fails to meets to terms and conditions of the project then performance bond will save the owner from the financial loss.
Payment Bond: In the payment bond, it gives the guarantee that the contractor will pay its subcontractors, labors, and supplies needed for the project.
The use of surety bond on the private construction project is at the owner’s judgment. In this sureties always need to be sure. Most of the surety companies are subsidiaries or division of insurance companies. If you are looking for an expert in this field then have the help of Molton Michel. Hopefully you will have the help of the best service.