Construction Surety Bonds Quiz

• Construction projects require contractors to provide bonds for protection.
• Bonds protect employers from non-payment, non-performance, contractor default, and warranty issues.
• Performance Security, Advance Payment Bond, and other bonds must be provided and maintained for payment.
• Construction projects entail a great deal of risk for the owner.
• Projects are often based on reliable estimates of construction costs.
• A surety bond minimizes the risk of contractor defaulting on the project.
• Surety bond is a guarantee provided by a firm that states that the contractor will fulfill the terms of the contract.
• If the contractor defaults, the surety will be obligated to satisfy the terms of the contract.
• General contractors may require major subcontractors to provide a surety bond.
• Surety arrangement is common in construction.

Test your knowledge of surety bonds in construction projects including Performance Security, Advance Payment Bond, and the role of surety firms in minimizing the risk of contractor default. Explore how bonds protect employers from non-payment, non-performance, and warranty issues.