When you are planning to get a surety bond in New Jersey, be sure to get the whole package of protection for your construction project. A performance bond bundled with a labor and materials bond will protect all those concerned on your project.
A performance bond is an insurance policy written that guarantees that the contractor will perform his construction duties fully and within the scope of the original construction contract. Performance bond is submitted at the time the contractor accepts the building contract. If the contractor fails to perform duties stipulated in the contract, the owner of the construction is compensated for any financial losses incurred.
Labor and Materials Bond
The labor and materials bond acts as a guarantee that all subcontractors, suppliers, and laborers will get paid for the work they do and the materials they provide. If the contractor does not pay those contributing to the project, this bond steps in and make sure everyone is compensated for their work. If the construction project is a public one, a lien on the property cannot be made to recover lost payment. On these type of projects, a labor and materials bond is the only assurance of payment.
A performance bond combined with a labor and materials bond is a winning combination. A surety bond in New Jersey is a good choice to help eliminate construction project headaches.