MoneyFactor offers construction bonding or surety bonding services to its customers. Construction bonding is a risk management tool in construction industry and it is used to protect project owners and contractors. A surety bond constitutes a legal guarantee that a construction project will be completed as expected and agreed between project owners and contractors. In simple terms, if a bonded contractor fails to perform as stated in the bond, the bonding company will provide a form of compensation to the owner.
Here are three different types of construction bonds:
- Big Bonds
- Performance Bonds
- Payment Bonds
Bonded jobs are more likely to be completed without problems due to huge financial and legal penalties that contractors face for failing to perform as stated in their surety bonds.