The surety bonds used in a typical construction contract are
A)bid bond, performance bond, and payment bond.
B)bid bond, contract award bond, and completion bond.
C)bid bond, performance bond, and completion bond.
D)prescreening bond, award bond, and completion bond.
E)none of the above.

Question

Quizplus · Accepted Answer

The typical surety bonds used in a construction contract include a bid bond, which ensures that the bidder on a contract will enter into the contract and furnish the required payment and performance bonds; a performance bond, which guarantees the contractor will perform the work as specified by the contract; and a payment bond, which ensures that subcontractors and material suppliers will be paid. These are standard in the construction industry to protect the interests of the project owner.

The Surety Bonds Used in a Typical Construction Contract Are