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Contract and Performance Bonds for the Construction Industry.
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Contract and Performance Bonds are designed to guarantee the performance of obligations under a contract. These bonds protect a project owner by guaranteeing a contractors performance and payment for labour and materials.
Construction lenders are also assured that a project will proceed and will be completed in accordance with a contract.
Kidd Insurances are a leading provider of contract bonds to the construction industry and can arrange covers under the following headings:
Bid Bonds
These guarantee that a contractor will enter into a contract at the amount bid and post the appropriate performance bonds. These bonds are used by owners to pre-qualify contractors submitting proposals on contracts.
Performance Bonds
As the name implies, these bonds guarantee performance of the terms of a contract. Performance bonds frequently incorporate payment bond (for labour and materials) and maintenance bond liability. This protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.
Payment Bonds
These bonds guarantee payment of the contractor's obligations under the contract for sub-contractors, labourers, and materials associated with the project.
Maintenance Bonds
These provide for the upkeep of the project for a specific period of time after a project is complete, and also guarantee against defective workmanship or materials.
Supply Bonds
Supply Bonds guarantee performance of a contract to furnish supplies or materials. In the event of a default by a supplier, the bond indemnifies the purchaser of the supplies against resulting loss.
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