Establishing Contract Protection

Establishing Contract Protection

surety bonds in Pennsylvania

If you have entered into a service contract or need to establish a personal guarantee of action, you may be required to either obtain or present a financial assurance of good faith. While there are thousands of bonds found across the United States, surety bonds in Pennsylvania can be narrowed down into more niche markets.

What Bonds Are Offered

Although the needs of the individual choose the type of bond, the following are commonly are required and requested in Pennsylvania.

Performance bond: This will keep an owner from financial loss if a contractor or service provider fails to complete the contract according to the specifics of the terms and conditions.

Bid bond: When a contractor submits a bid for a job, this bond  is offered as good faith that the follow-through will meet the performance and payment bond requirements and the contract price.

Payment bond: This bond confirms the contractor will pay the material suppliers, laborers and subcontractors needed to complete the project.

Maintenance bond: These funds work as a warranty, guarantying against problems or defects for a limited period of time once a project is completed.

For those looking for surety bonds in Pennsylvania, there are many insurance providers available to help you secure what it is both required by law but capable of keeping you financially covered.