When you’re approaching a major project of any sort, getting surety bonds in NJ to cover the guarantees you’re counting on throughout the process is always a good idea, and may be critical to getting the job done on time. However, there are many different types of bonds out there, and not all of them may be what you really need. Therefore, it’s best to familiarize yourself with some of the most popular before undergoing this process.
- Performance bonds are bonds that ensure that you’re protected from financial loss in the event that your contractor fails to complete the work you’ve paid for according the terms and conditions both parties have agreed upon.
- Payment bonds ensure that the contractor you’re using for your project will pay subcontractors and other specified party that play a part in the process.
- Labor and materials bonds serves a payment for all of the materials and labor needed for the project you’re beginning work on, and will serve as an assurance in the event that your contractor fails to pay up.
There are several other types of bonds out there which your next project may benefit from in the near future, but these are some of the most common and beneficial ones. Do a little more research on available surety bonds in NJ to ensure you’re covering all of your bases.