Different Types of Surety Bonds

Different Types of Surety Bonds

surety bonds in NJ

If you work in the construction industry, chances are you have probably heard of surety bonds before. However, there are many different types to choose from, so it is important to know that you are getting the right ones. Here are some types of surety bonds in NJ that you could choose from as a contracting firm.

There are some types of bonds that help ensure the performance and payment of the contractor or subcontractor. For example, the bid bond makes sure that the contractor will respect the bid amount given and the performance bond will protect the owner if the contractor doesn’t follow the terms and conditions of the contract. Payment bonds make sure that everyone from the subcontractor to the material provider is going to get paid.

There are also maintenance bonds that you can invest in. This makes sure that, in the event that there are defects within a certain time frame after project completion, everyone involved is protected. This can help make sure that the client gets those defects taken care of without the firm going bankrupt in the process.

In the construction industry, surety bonds from NJ should be an important part of business. Make sure that you are looking into your options and insuring your company ahead of time.