A payment bond covers payment of subcontractors, laborers and materials suppliers associated with the project. Payment bonds are issued for the protection of those supplying labor or materials to a particular bonded project. A performance bond guarantees performance of the terms of a contract.These bonds frequently
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Table of Contents Step 1: Know the Bond You Need Federal, State, County, and Municipal Government Required Bonds Performance Contracts Court Required Bonds Business or Private Owner Required Bonds Step 2: Work with a Specialty Surety Agent Step 3: Get Your Bond Quote and Purchase Your
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A performance bond guarantees performance of the terms of a contract.These bonds frequently incorporate payment bonds (labor and materials) and maintenance bonds. Bonding ultimately aims to protect the project owner from financial loss should the contractor fail to perform the contract in accordance with its terms
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