If you're in need of construction bonds, NHC has the knowledge and expertise to provide customized surety solutions that will deliver better results than any other agency. Whether you're a new company seeking your first construction bond or an established company looking for greater capacity and better terms, our construction bond specialists can help. Our commitment to our clients is ongoing. We take the time to engage with you and learn everything we need to know about your business in order to provide the best possible service. With NHC, you can trust that you're getting the best possible construction bond solutions for your business.
Construction bonds, often referred to as "contract bonds," are a type of surety bond used in the construction industry to ensure that the principal (usually the contractor) fulfills their obligations as outlined in the contract with the obligee (typically the project owner). These bonds protect the obligee from financial loss should the contractor fail to complete the project or fail to meet the specified standards.
There are several types of construction bonds, including:
Bid Bonds: This ensures that the contractor will honor their bid and will secure the required performance and payment bonds if awarded the contract.
Performance Bonds: This guarantees that the contractor will complete the project as per the terms and conditions of the contract. If the contractor fails to do so, the bond will cover the obligee's costs to complete the project.
Payment Bonds: This ensures that the contractor will pay all subcontractors, laborers, and suppliers involved in the project. If the contractor defaults on payments, those owed money can make a claim against the bond.
Maintenance Bonds: This guarantees that the contractor will fix any defects or issues that arise after the project's completion, typically within a specified warranty period.
Supply Bonds: This ensures that suppliers provide materials as contracted, ensuring there are no delays or disruptions due to material shortages.