Securing competitive pricing on performance and payment bonds is important to growing your business. Working with a full-service surety bonding agency experienced in the needs of the construction business can be an important advantage in finding the best rates.
What is a Construction Performance Bond?
A performance bond is a contract bond that guarantees the contractor will faithfully perform the terms of the contract. This protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions. Performance bonds frequently incorporate payment bond (labor and materials) and maintenance bond liability. While a bid bond is submitted with the bid, a performance bond is submitted by the winning bidder upon award of the contract.
A payment bond is a contract bond that guarantees payment of the contractor's obligation under the contract for subcontractors, laborers and material suppliers associated with the project, providing assurance that they will be paid if the contractor defaults. Since liens may not be placed on public jobs, the payment bond may be the only protection for those supplying labor or materials to a public job.
What Is the Difference Between Performance and Payment Bonds?
Performance bonds and payment bonds are often written as one bond, but by definition they are not the same. A performance bond assures satisfactory performance of the terms of the contract. A payment bond assures that the subcontractors, laborers and material suppliers will receive payment for the services and products used to fulfill the contract.
Why Brunswick Companies for Performance and Payment Bonds?
Brunswick Companies’ Surety Bonding specialists provide responsive, knowledgeable assistance to our clients in the construction industry, guiding you through the process of obtaining performance and payment bonds and other contract bonds.
Access to Wider Range of Construction Bonding Companies
Working with an experienced surety broker can provide an edge in obtaining the best pricing. Mark Levinson, the leader of our Surety Bond Group, has decades of experience in the construction surety market. He has developed strong relationships with the leading surety bond underwriters, so that we may provide our clients with access to more favorable terms and conditions.
We’ll Help You Grow Your Business
Taking a proactive approach to addressing underwriting concerns streamlines the approval process and is the key to expanding your access to surety credit. We work closely with our clients to increase their bonding capacity, in line with their expectations for corporate growth.
