There are many individuals who are in need of securing bonds for either personal or business needs. A surety company in New Jersey, for example, will be able to best offer bonds to cover their residents’ needs.
There are many reasons why a resident would need a bond, and these differ from the reasons of business owners. Most commercial bond coverage is requested by contractors. The types necessary often include:
Bid bonds: A job bid is submitted in good faith and the contract price is honored. The contractor will also provide the necessary payment and performance bonds for the job.
Labor and materials or payment bonds: Generally issued along with the performance bonds, it covers the costs for the labor, equipment, services, contractors and materials should the contractor fail to pay for them as agreed within the contract.
Performance bond: Owners are protected from financial loss in the event the contractor fails to complete the contract according to its terms
Maintenance bond: Acts as a warranty and guarantees against defects for a limited period of time at the completion of the project.
By using a surety company in New Jersey, licensed contractors can best serve the residents of the state through financial guarantees for their work.