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Performance Bond - 🧠ANSWER ✔✔Guarantees that the contractor will
complete a contract with in its time frame and conditions
Payment Bonds - 🧠ANSWER ✔✔Guarantees subcontractors and suppliers
that they will be paid for work if they perform properly under a contract
Maintenance bond - 🧠ANSWER ✔✔Guarantees that for stated Typically
one year no defective workmanship or material will appear in the completed
project
,Completion bond - 🧠ANSWER ✔✔Provide assurance to the financial
backers have a construction project but it will be completed on time
Fidelity bond - 🧠ANSWER ✔✔Covers business owners for losses due to
dishonest act by there employees
Lien bond - 🧠ANSWER ✔✔Guarantees that liens cannot be placed against
the owners property by contractors for payment of service
Sub contractors bond - 🧠ANSWER ✔✔Protects the general contractor in
the event that subcontractors do not fully perform the contract and or pay
for labor and materials
Bank letter of credit - 🧠ANSWER ✔✔Is not a Bond but is it cash guaranteed
to the owner it is not a guarantee of performance but can be converted to a
payment to the owner by a bank or lending institution
Bid bond - 🧠ANSWER ✔✔Guarantees that the contractor if awarded the job
will do the work at the submitted bid price enter into a contract with the
owner and furnish the required performance and payment bonds
What is a bond - 🧠ANSWER ✔✔Bonds provide protection in the event that
the contractual obligation's are not met
, Bond language - 🧠ANSWER ✔✔At a minimum Bond should contain the
total dollar amount length of the bond requirements for notice of the fact or
lack of maintenance and bond enforcement
Filing procedures - 🧠ANSWER ✔✔Construction law contractual
relationships govern the bond claims process the filing process as outlined
in the bond
Project changes - 🧠ANSWER ✔✔Unless specifically outlined in the bonds
agreement the Surety company will not cover changes to the original
contract in most cases request for additional coverage must be made and
the bonding company must be notified of the contract changes
Payment in the event of default - 🧠ANSWER ✔✔In the event of default
Surety may provide additional finances arrange for a new contractor or hire
subcontractors to complete the work or pay out the amount of the bond
Miller act of 1935 - 🧠ANSWER ✔✔Current law requiring performance and
payment bond on a federal construction project value greater than
$100,000
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
Ace the Test
Performance Bond - 🧠ANSWER ✔✔Guarantees that the contractor will
complete a contract with in its time frame and conditions
Payment Bonds - 🧠ANSWER ✔✔Guarantees subcontractors and suppliers
that they will be paid for work if they perform properly under a contract
Maintenance bond - 🧠ANSWER ✔✔Guarantees that for stated Typically
one year no defective workmanship or material will appear in the completed
project
,Completion bond - 🧠ANSWER ✔✔Provide assurance to the financial
backers have a construction project but it will be completed on time
Fidelity bond - 🧠ANSWER ✔✔Covers business owners for losses due to
dishonest act by there employees
Lien bond - 🧠ANSWER ✔✔Guarantees that liens cannot be placed against
the owners property by contractors for payment of service
Sub contractors bond - 🧠ANSWER ✔✔Protects the general contractor in
the event that subcontractors do not fully perform the contract and or pay
for labor and materials
Bank letter of credit - 🧠ANSWER ✔✔Is not a Bond but is it cash guaranteed
to the owner it is not a guarantee of performance but can be converted to a
payment to the owner by a bank or lending institution
Bid bond - 🧠ANSWER ✔✔Guarantees that the contractor if awarded the job
will do the work at the submitted bid price enter into a contract with the
owner and furnish the required performance and payment bonds
What is a bond - 🧠ANSWER ✔✔Bonds provide protection in the event that
the contractual obligation's are not met
, Bond language - 🧠ANSWER ✔✔At a minimum Bond should contain the
total dollar amount length of the bond requirements for notice of the fact or
lack of maintenance and bond enforcement
Filing procedures - 🧠ANSWER ✔✔Construction law contractual
relationships govern the bond claims process the filing process as outlined
in the bond
Project changes - 🧠ANSWER ✔✔Unless specifically outlined in the bonds
agreement the Surety company will not cover changes to the original
contract in most cases request for additional coverage must be made and
the bonding company must be notified of the contract changes
Payment in the event of default - 🧠ANSWER ✔✔In the event of default
Surety may provide additional finances arrange for a new contractor or hire
subcontractors to complete the work or pay out the amount of the bond
Miller act of 1935 - 🧠ANSWER ✔✔Current law requiring performance and
payment bond on a federal construction project value greater than
$100,000
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
