Construction Bonds.

Performance Bonds assure that a contract will be performed according to its terms and specifications. In the event a contractor defaults, these bonds generally obligate the surety to either: finance the contractor, undertake the completion of the project, tender a new contractor to the owner or pay the bond penalty.
Payment Bonds/ Labor and Material Bonds that assure a contractor will make appropriate, prompt and full payments for labor and materials provided for a project.
Maintenance Bonds assure a project will remain free of defects in workmanship or materials for a specific period of time.