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  • Tempe, AZ 85282
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Bonds and Term Glossary

Bonds generally are to guarantee the performance by one party of an obligation to another. Though there are numerous bonds available, the most common are listed below.

Bid Bond guarantees to owner or general contractor that a contractor bidding a specific project will, if the bid is accepted, be able to provide a performance and payment bond for the subject project.

Payment & Performance Bond guarantees 1) Performance Bond – that the contractor will perform and complete the awarded project pursuant to the terms and conditions of the subject contract; and 2) Payment Bond – that the contractor will pay all bills (i.e. labor, suppliers, and subcontractors) in accordance with the terms and conditions of the subject contract.

Notary Bonds are required by individuals who have notary commissions.

License Bonds are provided where states or municipalities require them in order to obtain permits or licenses to do business.