Surety bonds play a crucial role in the construction industry, providing financial protection and ensuring project completion. Two common types of surety bonds used in construction projects are bid bonds and performance bonds. While both serve as a guarantee, they have distinct purposes and functions.
When looking into a surety bond for your company, you’ll want to select the correct type. Let’s take a closer look at bid bonds vs. performance bonds to help you understand which one will work best for you.
Both bond types provide financial security and protect the interests of all parties involved by promoting fair competition, accountability, and project success. They give project owners confidence in the contractor's ability to complete the project and safeguard contractors from unfair bidding practices.
The surety experts at AssuredPartners are ready to develop a comprehensive program to help drive contracts and keep businesses running smoothly. Let’s partner together to explore your options and provide the best coverage for your future projects.
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