A performance bond guarantees that the contractor will perform the work in accordance with the...
A bid bond is provided by a contractor in a competitive bidding situation as a means of guaranteeing that, if awarded the project based on the bid submitted, the contractor will execute the contract for the quoted price.
If the contractor declines to enter into a contract to perform the work at the agreed-upon price, the bid bond will reimburse the obligee (owner or upper-tier contractor) the difference between the defaulting contractor's bid and the next lowest bid, up to the penal sum of the bond.
proposal bond
A performance bond guarantees that the contractor will perform the work in accordance with the...
A payment bond guarantees that suppliers and subcontractors will be paid for materials and labor...