What it covers
The essentials, at a glance.
In practiceA project owner requires a bid or performance bond before awarding the contract, and this provides that guarantee.
Not coveredA bond isn't insurance for you, if it pays out the surety can seek repayment from you.
In practiceA municipality requires a licence or permit bond to operate, and this satisfies that requirement.
In practiceYou promise to complete work to contract, and the bond backs that promise to the owner.
Not coveredThe bond protects the project owner, not your business, from your non-performance.
In practiceContractors and businesses bidding public or large private work usually need bonding to qualify.
