Contract Bond
A contract bond is primarily used by contractors to meet their obligations and performance for a particular construction project, as stated in their contract agreement. That is why contract bonds are also sometimes referred to as construction bonds. In the event that the contractor fails to meet the obligations as listed on the contract, a construction bond will transfer the liability to the bonding company, who will be responsible for the payment owed to the project owner.
Below is a list of several types of contract bond: