A contract bond is a surety bond given to secure the performance on a construction project.
Bid bonds provide financial assurance that the contractor submitting a bid, if awarded the construction contract, will enter into a formal contract with the owner and will post performance and payment bonds.
Performance bonds guarantee that the contractor will fulfill all terms, specifications and conditions of the construction contract.
Labour and Material Payment Bond
The labour and material payment bonds guarentees that the contractor will pay labour and material bills associated with the contract.