Monthly Archives: September 2012

BID (TENDER) BONDS This is a debt secured by a bidder for a construction project or other large ‘project’ on a tender based selection process for providing a guarantee to the potential client that the bidder will take on the contract if selected. If they decline to accept the contract the bond is forfeited, unless […]

Conditional bond A conditional bond is common within the UK construction industry. Such a bond is usually issued by an insurance company, and payment is usually conditional upon the employer who makes the call providing the amount of loss which he has suffered. In practice, therefore, a conditional bond may require litigation before any payment […]

On-Demand Bond An on-demand bond is also referred to as an Unconditional Bond. Contractor’s performance bonds come in two basic varieties to meet the needs of different project owners. An on-demand bond results in an automatic cash payment if the contractor fails to complete the project. With a conditional performance bond the burden of proof […]