Types of Contract Bonds:

Construction:  A construction bond is a guarantee by a third party (usually an insurance company) to finalize construction in accordance with the terms of the contract (at no additional cost to the owner) in the event the contractor fails to perform according to the terms of the contract.  Types of constructions bonds include, but are not limited to:

• Bid Bonds: Provides a financial guarantee that a bid has been proposed in good faith.  When a surety issues a bid bond to a contractor, they are assuring the contractor will enter into the contract at the bid price.  It supports that the contractor is qualified for the necessary Performance and Payment bonds.
• Maintenance Bonds: Guarantees against faulty workmanship and materials for a specific period of time.
• Payment Bonds: Guarantees the contract will pay the suppliers, laborers and subcontractors involved in the project.
• Performance Bonds: This bond is required by the obligee (owner) to insure against financial loss in the event the contractor (principle) is incapable of performing the contract according to its terms and conditions. Guarantees against faulty workmanship and materials for a specific period of time.
• Subdivision Bonds: Guarantees a city or township that a contractor will construct improvements for the good of the public.  

Commercial: Commercial bonds are required instruments of most commercial entities, non-profit organizations, and licensed practitioners. They guarantee compliance on the part of individuals and firms with the laws, regulations or private agreements to which principals become obligated.  Such bonds are required by law to conduct business.  Types of commercial bonds include, but are not limited to:

• License and Permit Bonds: State or local laws require License and Permit bonds be issued to operate certain types of businesses.  Examples of such businesses include: streets, sidewalks, gutters, drainage systems, etc.
  
• Judicial and Probate Bonds:  Such bonds secure the duties and their compliance with court orders.  They guarantee the honest accounting and faithful performance by fiduciaries and/or trustees. These bonds are required by courts to assure individuals are appointed to set up and administer estates of deceased persons, incompetent persons and/or minors.  Examples include: administrators, executors, guardians, trustees of wills, etc.
  
• Public Official Bonds: Guarantee the performance of duty of a public official.  Examples include: sheriffs, judges, clerks, notaries, etc.
• Miscellaneous Bonds: As the name states, miscellaneous bonds do not fall in the above categories.  These bonds can be more hazardous obligations and require an extensive underwriting process.          

Our team of surety professionals can accommodate bonding for contract, bid, performance, payment, supply, commercial and miscellaneous bonds.

Appleby & Wyman's experienced staff allows us to service our clients quickly for any license & permit bond requests, as well as expediting bonds requested or required by the courts.  Appleby & Wyman is here to service any of your bonding needs. 

Please contact Regina Marquis for assistance or additional information:  

Direct Dial: (978) 236-3606
Direct Fax: (978) 236-3706
Email: rmarquis@applebywyman.com