There are several types of surety bonds, including:
Bid Bond—This type of bond provides assurances that a contractor submitted a bid in good faith and will finish the job as outlined in the bid.
Payment Bond—A payment bond provides assurances that parties involved in the contract (e.g., subcontractors and suppliers) will be paid.
Performance Bond—This type of bond provides assurances that the obligations listed in the contract will be met.
Several other types of bonds may be available and different projects or project phases may require specific bond coverages.