Contract Bonds are often necessary in the construction industry by general contractors as a part of construction law and are a guarantee from a Surety to a project’s owner that a general contractor will adhere to the provisions of a contract. Bid bonds, performance bonds, payment bonds, and maintenance bonds are common types of contract bonds.
License and Permit Bonds are required by a municipality or other public body as a condition to granting a license or permit to engage in a specified activity, this bond guarantees that the party seeking the license or permit (the obligor) will follow applicable laws or regulations.
Miscellaneous bonds are those that do not fit well under the other commercial surety bond classifications. Examples of miscellaneous bonds include: release of mechanics lien bonds, tax preparer’s bonds, janitorial bonds, wage and welfare bonds.