An agreement whereby one party guarantees on behalf of another party the performance of an obligation in favor of a third party.
To be utilized for any bids that may be participated thereon for a specified period of time. This bond is liable for the difference between the original winning bid and the bid of the next qualified bidder to whom the contract is finally rewarded in case the original bidder defaulted.
To complete the works in accordance with the plans and specifications and within the period specified, as well as comply with the other conditions stated in the agreement.
This bond is issued as full undertaking of the principal of the advance payment made by the obligee (mobilization fund) on the agreement. The amount is usually 15% of the entire contract. This guarantees the recoupment through deductions from the periodic billings.
- 10 % Retention
This is bond issued to guarantee the repair of hidden defects and workmanship during the period of construction.
Maintenance and Warranty
This bond is issued to guarantee the correction and repair of hidden defects in the materials and the workmanship used by the principal in the project after one (1) year of acceptance of the project.
This bond is issued to guarantee payments of labor and materials by the contractor.
This covers all fraudulent and dishonest acts of employees. Hence, this bond undertakes to reimburse the obligee for loss of money and/or other property because of the dishonesty of the principal.
Condition to answer for whatever properties against the Heirs. It ussually expires after two (2) years from date of issuance of Certificate Title - Incorporation under the Rule 74 of the Revised Rules of Court.