Bid and Construction Bonds Overview

Bid Bonds = Provided as the basic instrument of prequalification Surety bond = A promise to pay the obligee if the principal fails to meet an obligation Performance bond = Assures that the principal will perform the work according to the contract Payment bonds = Guarantees payment to subcontractors and suppliers

Obligee = Recipient of an obligation Principal = Primary party who will perform the contractual obligation Surety = Assures the obligee that the principal can perform the task Guarantor = Commits to pay a certain amount if the principal fails to meet an obligation

Warranty bond = Ensures the quality of workmanship and materials used Maintenance or Warranty bond = Covers defects in materials and workmanship after project completion Supply bonds = Guarantees timely delivery of materials and goods Subdivision bond = Ensures completion of infrastructure in a real estate development

<p>Penalty = Amount that may be paid as damages if obligations are not met Prequalification = Process to assess contractor's suitability before bidding Contractor = Party who will enter into a contract if bid is accepted Additional bonds = Required if bid is accepted, besides bid bond</p> Signup and view all the answers

<p>Payment Bonds = Assure payment to suppliers of labor and material Maintenance Bonds = Protect project owner from defective workmanship Subdivision Bonds = Guarantee property development in accordance with local guidelines Site Improvement Bonds = Provide guarantees for improving existing structures</p> Signup and view all the answers

<p>CARI = Covers unforeseen loss or damage during construction period Commercial Auto Insurance = Provides insurance for vehicles used by businesses Workers' Compensation Insurance = Protects businesses when employees are injured on the job Inland Marine Insurance = Covers various types of property including those in transit and digital information</p> Signup and view all the answers

<p>Supply Bonds = Assurance for delivery of materials as contractually specified Maintenance Bonds = Also known as warranty bonds Subdivision Bonds = Guarantees property development according to local requirements Site Improvement Bonds = Provides guarantees for improving existing structures</p> Signup and view all the answers

<p>CARI = Protects against loss or damage to building works during construction period Commercial Auto Insurance = Intended for vehicles used by businesses to avoid high repair costs or lawsuits Workers' Compensation Insurance = Coverage for employees injured while on the job Inland Marine Insurance = Covers various types of property including those in transit and digital information</p> Signup and view all the answers

<p>Payment Bonds = Assures payment to suppliers subject to restrictions by statute Maintenance Bonds = Guarantees against defective workmanship after completion Subdivision Bonds = Ensures property development in line with local guidelines Supply Bonds = Assurance for delivery of materials, supplies, etc. as specified in contract</p> Signup and view all the answers

<p>CARI = Cover against unforeseen loss or damage during construction period Commercial Auto Insurance = Coverage for vehicles used by businesses to avoid high repair costs or lawsuits Workers' Compensation Insurance = Insurance for employees injured while on the job Inland Marine Insurance = Covers various property types including those in transit and digital information</p> Signup and view all the answers