Performance and Payment Bonds
BID BONDS
A bond filed with a bid for a construction or other project which guarantees that if the contractor has the low bid and is awarded the job, he will furnish the required contract bonds.
PERFORMANCE BONDS
A guarantee of the failful performance of a construction contract.
PAYMENT BONDS
A bond furnished by a contractor which guarantees that he will pay for the labor and materials used in a particular project. It relieves the owner of the project from possible liabilty because of non-payment by the contractor.
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