Suretyship
Construction Bonds
Construction bonds protect against project disruptions or financial loss due to contractor’s failure to complete a project or failure to meet contract specifications. There are various construction bonds each one having specific purpose as follows:
Surety Bond for Downpayment
Equivalent to the amount of the downpayment, this bond guarantees the liquidation of the downpayment within a period agreed upon by parties.
Performance Bonds
This usually 20% or 30% of the Contract Price and guarantees the faithful performance of the Contract based on its terms and conditions.
Warranty Bond
Guarantees the correction and repair of hidden defects in the materials and workmanship used by the contractor in the project found or becoming evident within one year from the date of final acceptance of the project owner.