Bonds

Bid Bonds

A debt secured by a bidder for a construction job or similar type of bid-based selection process for the purpose of providing a guarantee to the project owner that the bidder will take on the job if selected. The existence of a bid bond provides the owner with assurance that the bidder has the financial means to accept the job for the price quoted in the bid.
Performance Bonds

A bond issued to one party of a contract as a guarantee against the failure of the other party to meet obligations specified in the contract.
Security Bonds 

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