Contract and Commercial Surety

Bid Bond

A bid bond is issued as part of a supply bidding process by the contractor to the project owner, to in hopes guarantee that the winning bidder will undertake the contract under the terms at which they bid.

Performance Bond

A performance bond, also known as a contract bond, is a surety bondissued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. A job requiring a payment andperformance bond will usually require a bid bond, to bid the job.

Payment Bond

A payment bond is a surety bond posted by a contractor to guarantee that its subcontractors and material suppliers on the project will be paid. They are required in contracts over $30,000 with the Federal Government and must be 100% of the contract value. They are often required in conjunction with performance bonds.