No items found.
FREE WEBINAR: End the Whack-a-Mole: Lien Waiver Best Practices for Subs
Register Now →
By clicking “Accept All Cookies," you agree to let Siteline store cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. View our Privacy Policy for more information.
Construction glossary

What is a Bond?

A bond in the construction industry is a type of surety bond, which serves as a financial guarantee for project completion. It safeguards the interests of stakeholders such as project owners, suppliers, and subcontractors, in the event that the contractor fails to fulfill the contract conditions. Bonds are usually required for public works projects in ensure taxpayers' money is well spent. There are different types of bonds such as bid bonds, performance bonds, payment bonds, and maintenance bonds. For instance, a performance bond guarantees the contract's terms are fulfilled, while a payment bond ensures laborers, suppliers and subcontractors are paid. Bonds are crucial in risk management in construction contracts.