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Of as PRINCIPAL, and of as SURETY(S), are hereby held and firmly bound unto the state of Iowa in the penal sum of not less than: dollars for the payment, whereof, the said PRINCIPAL and SURETY(S) bind themselves,.
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Hereinafter FAQ
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Bid Bonds. One of the more common types of contract bonds is the bid bond, which is required during the construction bidding process.
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The 4 most common types of contract bonds Bid bonds. A bid bond provides financial protection to the obligee. ... Performance bonds. A performance bond guarantees that you, the contractor, will adhere to all terms of the contract and finish the job as promised. ... Payment bonds. ... Maintenance (warranty) bonds.
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Those are as follows: Bid Bond. A bid bond is a document that is provided with a contractor's tender package and submitted to the project owner on the closing date of the tender. ... Agreement to Bond (a.k.a. Surety's Consent or Consent of Surety) ... Performance Bond. ... Labour and Material Payment Bond.
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A construction bond, also known as a contract or surety bond, guarantees that your contract is completed. If the other party in your contract fails to complete their duties ingly, than you can make a claim on the bond to recover any of your losses.
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A bond form with regard to surety bonds is the document that states the purpose of the bond, the bond penalty, the term, outlines the conditions of the bond, and specifies the parties involved in the agreement. The bond form is a legal document and must be accepted by all parties to the agreement.
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KNOW ALL MEN BY THESE PRESENTS, That we, ___________________________________________, (hereinafter called the Principal), as Principal, and NAME OF SURETY COMPANY , duly organized under the laws of the State of. , (hereinafter called the Surety), as Surety, are held and firmly bound unto ...
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For example, a client issues a contractor a performance bond. If the contractor is not able to follow the agreed specifications in constructing the building, the client is given monetary compensation for the losses and damages the contractor may have caused.
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When a contractor fails to abide by any of the conditions of the contract, the surety and contractor are both held liable. The three main types of construction bonds are bid, performance, and payment.
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