Bond Insurance | Frank Ramdeen

Guarantee that a contractor submitting a bid will enter into the contract if their bid is accepted. If they fail to do so, the bond compensates the project owner for the costs of re-tendering. 

A performance bond may be necessary when dealing with various government bodies or state enterprises. These types of bonds are extremely common in the construction sector, as it's a financial guarantee by the Insurer to the third party (government/state etc.) that the contractor will fulfil their contractual obligations.

This is a guarantee when money is paid before any work is done. This bond is required in the event of default by the contractor.