Top 4 Types of Construction Bonding You Need to Know About

Two parties agree to a construction plan by shaking hands while a hardhat and project plans sit in the foreground.Construction can be a complicated environment. The physical part is straightforward, but the bidding process can get confusing. Construction bidding, known as Construction Bonds, is a way for project managers and owners to ensure both parties stick to the agreed terms. These terms point out what the project will accomplish and how much time it will take to complete. These bonds often are part of the bidding process.

Keep reading to learn more about the four major types of construction bonds used during the bidding process.

1. Bid Bond

This type of bond makes sure to only include bidding parties who meet a financial requirement. In the event of a winning bid being withdrawn, the project manager has the right to file a claim on the bond. This claim will require the bidder to cover the difference between their bid and the next bid. This type of bond is an assurance for payment.

2. Performance Bond

A performance bond ensures that the winning contractor completes the project as stated in their bid and in the contract they agree to follow. If there is any aspect of the contract left incomplete, the owner may file suit against the contractor. The money gained from this suit may then be used to hire a new contractor to finish the project.

3. Payment Bond

Payment bonds take care of, you guessed it, the payments. They make sure the payment process is streamlined, even when the contractor goes bankrupt. These payments can then go to subcontractors, suppliers, or other parties who assist in bringing the project to completion. Federally funded projects of more than $100,000 require performance and payment bonds, according to the Federal  Miller Act.

4. Maintenance Bond

Not all work turns out as good as it should have - which is where this type of bond comes into play. This bond provides protection from low quality or disfunctional materials or workmanship. A timeframe of when this will be effective needs to be written into the contract. If problems are found, the money from this bond goes to repairs and replacements. 

Partnering with Professional Contractors and Suppliers

You will find these common bonds in just about every construction project. Working with a competent crew of contractors and suppliers will boost the success and timeframe of your project. Here at the Ferrante Manufacturing Company, we have brought projects together for more than 70 years. Contact us today to gain from our experience and top-quality materials produced in-house.

Choosing the Right Height for Your Bar Stool

Originally posted on 05/20/2019 Creating character in your business takes planning. When you plan your restaurant or bar branding through its furniture's look and feel, you bring many elements together to give your customers a unique...

How to Choose Restaurant Furniture

Originally posted on 05/21/2018 As a restaurateur, there are many things that you will need to take into account before opening a new restaurant. The menu, the staff, the location, the recipes, and the advertisement are some of the things...

5 Ways to Improve Restaurant Attendance During Winter

Though we are only a few weeks into January, the winter blew in strong this year. No matter the year, the winter season brings unpredictable weather that can put a strain on your restaurant. Preventing all mistakes is idealistic, but you can create...

4 Tips to Get the Right Tables For Your Restaurant

The look and feel of your restaurant are important. Style factors into how people feel in your space which can matter as much as the food in creating an experience. A big part of creating an atmosphere in your restaurant is the tables you choose....

What is Custom Architectural Millwork?

The world of woodworking is a field that brings both functionality and aesthetic beauty to both residential and commercial buildings. Both “architectural millwork” and “architectural woodwork,” offer options for consumers...

Key Differences Between Millwork and Casework

As woodwork and design go, there are many options for the consumer. Let’s go through casework and millwork to help you decide what type of work is best for your home or business. The Difference is in the Custom Work The most significant...

Why Choose a Custom Architectural Millwork Company?

While remodeling may be quite exciting, the stress of making decisions and meeting the costs associated with remodeling is quite grueling. You need to ensure that your expectations in terms of your home’s design and outlook are met. A custom...

Popular Restaurant Design Trends

When it comes to restaurant designs, you think it would only be appealing to those who are in the business. However, with the rise of technology, many are snapping, tweeting and posting their locations and where they are dining for all to see. A...

Common Uses for Architectural Millwork

When it comes to interior design, the details make all the difference. Architectural millwork allows a designer to cut unique shapes and details that can breathe character and life into any room. From classic and ornamental to modern and sleek, a...

Benefits Of Custom Architectural Millwork

Building or remodeling your building is an exciting time. It can also be stressful, as there are numerous decisions that must be made throughout the process. Creating a space that is in line with your personal tastes and the needs of your customers...
Page: 12 - All
Architectural Millwork That
Captures Your Vision

Michigan's Oldest and Most Prestigious manufacturer of custom interior architectural
fixtures and installations Let us bring your vision to life.