Bid and Construction Bonds Overview

10 Questions

Match the following types of construction bonds with their descriptions:

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

Match the following parties in surety bonds with their roles:

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

Match the following bond types with their purposes:

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

Match the following terms related to bid bonds with their meanings:

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

Match the following types of bonds with their respective purposes:

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

Match the following insurance types with their descriptions:

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

Match the following bond types with their primary functions:

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

Match the following insurance types with their purposes:

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

Match the following bond types with their guarantees:

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

Match the following insurance types with their coverage areas:

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

Learn about the basics of bid bonds, including their role in prequalification and the penalties for failure to enter a contract. Explore different types of construction bonds such as performance, payment, and warranty bonds.