There are several different surety bonds in NJ to choose from. When selecting a bond it is important that you understand what the bond entails to fully understand how it could benefit you. Take a look at the different surety bonds that are available.
As the name implies, a bid bond insures the bid of the chosen contractor. It assures that the contractor will do the work at the agreed upon price and within the set parameters.
In the event that there are defects in the work performed, a maintenance bond guarantees the contracted work and covers repair and maintenance fees.
Payment bonds assure that a contractor will pay all laborers associated with a particular job. This bond also includes the purchase of necessary materials to complete the project.
A performance bond protects the owner from accruing financial loss if the job is not completed according to the terms and conditions established.
Labor and Materials Bond
A labor and material bond is normally issued along with a performance bond to cover the labor and material costs of a contract should it not be completed.
By understanding the different bond options available you can make an informed decision about which ones will be best for you. Contact your local insurance agent to learn more about surety bonds in NJ.