Construction bonds claims
Performance Bond is a bond that guarantees that a party (usually a contractor) must comply with its legal and contractual obligations; otherwise, the title will protect and indemnify the party to whom the defaulter owes according to the terms and conditions of the contract.
The Performance Bond is generally a three-way contract between:
- The principal (the party that owes the contractual and legal obligations);
- The obligated party (who owes the principal the obligation) and
- The surety (the party that will issue the financial security that guarantees the obligated party that the principal will comply with its obligations set out in the contract).
The Construction Bonds can be:
- Performance Bonds;
- Bid Bonds;
- Construction lien Bonds;
- Labor and material payment Bonds;
- Holdback repayment Bonds
Regardless of the type of construction bonds, all are intended to ensure that the contractor will fulfill the contract’s obligations.
If you are in the middle of a construction contract, you feel hurt due to your Construction Bonds. Please contact us. We have experience in the subject, and we can help you. Call for our experienced construction lawyer for more information – 416-221-2221