Do You Use Project Bonds?

As an integrator, project bonding was common.

For background, there were two major types of bonds required by the projects we bid:

1) Bid Bond: This is 'quote insurance' so if you win low bid but then decide you don't want the job, the customer (bid solicitor) files a claim against your bond and then picks the next lowest bidder....

**** ********** **** ***** *** *** *** '*** ******' ** matter *** ******** **** *** ***, ******* *** **** **** the **********.

*)Performance ****: An even stronger type, this essentially is insurance that the bidder will successfully finish their work. If they start on a $5M job, but only completes $2M of it (ie: abandon the project, go out of business, welch on a deal, etc), this Bond pays the difference to the customer so they can finish the job or correct bad work.

** *** ****** *** *********, *** *** **** ******** ** how **** ********* *** ****?

***** **** **** ** *** **** ****, *** *** **** money *** **** ********* ******* ***? **** *** **** **** a **** ****?

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