Contract Bond

The terms "contract bond" and "construction bond" are essentially two different names for the same thing. A contract bond is a type of surety bond that guarantees contracts are fulfilled. If the contracted party fails to fulfill its duties according to the bond's terms then the project developer can make a claim on the bond to recover financial losses.

 

Construction Surety Bond Types:

 

Bid Bond

Performance Bond

Payment Bond

Supply Bond

Maintenance Bond

Subdivision Bond

Site Improvement Bond

Contractor License Bond