Surety Bonds

Surety Bonds

Surety – Contract Performance and Commercial Bonds

Surety bonds are available to cover different parts or phases over the life of a construction contract. The purpose of
surety bonds are to provide the principal client (project owner) with a level of financial compensation in the event of the default or failure of a contractor under a construction contract.

There are a range of bonds available to contractors to meet a number of contract requirements include:

Surety bonds are designed for:

Contract Bonds

Set up by contractors for the benefit of their customers or potential customers (‘the principal’), Contract Bonds provide security against default or non-performance. When compared with a bank guarantee, they have the advantage of not tying up working capital or lines of credit.

Contract Bonds include:

Commercial Bonds

Commercial Bonds cover regulations and commercial contractual obligations and include:

So call CPR Insurance Services for more information or assistance if you need to obtain any of these Bonds.