Contract & Commercial Surety in Rancho Cucamonga
A bid bond is issued as part of a supply bidding process by the contractor to the project owner, to in hopes guarantee that the winning bidder will undertake the contract under the terms at which they bid.
A performance bond, also known as a contract bond, is a surety bondissued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. A job requiring a payment andperformance bond will usually require a bid bond, to bid the job.
A payment bond is a surety bond posted by a contractor to guarantee that its subcontractors and material suppliers on the project will be paid. They are required in contracts over $30,000 with the Federal Government and must be 100% of the contract value. They are often required in conjunction with performance bonds.