CE 610-HW1 - Mark Zamora HW 1 CE 610 2.1 What are the three...

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Mark Zamora CE 610 HW 1 2.1 What are the three major types of construction bonds? Bid Bond Performance Bond Payment Bond Why are they required? o A bid bond is required in an owner-contractor relationship in order to protect a party/firm from damages in the event that the other remaining party defaults. It provides security or compensation to the principal or the party that losses advantage due to the damage brought upon by the defaulting party. o A performance bond is required to guarantee the owner that the contractor who is awarded the contract work to complete the project and will comply with project specifications. It provides protection to the owner in case contractors do not comply with the specified quality of the work; in addition it guarantees satisfaction to the owner. o A payment bond on the other hand, is required in order to protect the owner against liens or charges against the project that are unpaid in the event that the contractor defaults during construction work. This provides
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This note was uploaded on 11/28/2011 for the course ECONOMICS 101 taught by Professor 122 during the Three '11 term at ADFA.

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CE 610-HW1 - Mark Zamora HW 1 CE 610 2.1 What are the three...

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