When you are choosing construction insurance in Wayne, NJ, remember that a comprehensive insurance solution includes surety bonds. Here is a review of the different types of bonds for the construction industry.
The bid bond, like its name indicates, is taken out at the time of the formal construction bidding process. It is a guarantee that the contractor will honor the price of the bid as well as later take out payment and performance bonds.
The payment bond guarantees that everyone working on the project will be paid. Another bond that is written in concert with the payment bond is called the labor and materials bond. This bond will pay all labor, equipment, services, and materials used in the construction project if the contractor is unable to do so.
In the event that the contractor fails to complete construction services as outlined in the construction contract, the owner is protected by the performance bond. This bond will pay for the completion of the project by another contractor.
Having a maintenance bond written on a construction project guarantees that there will be no construction defects for a period of time after the project’s completion. A contractor’s willingness to get a maintenance bond for a project may make him more desirable in the bidding process. Construction insurance in Wayne, NJ can write a variety of surety bonds for your projects.