Bond

Bond is a written declaration by the surety, the insurer, to guarantee the obligations assumed by a contractor under a contract towards his obligee, the principal or employer. Such surety bonds are issued in connection with construction or erection contract works.

Tender Bond

Tender Bond guarantees the tender bid amount of the tenderer while bidding for a contract.

Performance Bond

Performance Bond guarantees the due completion of a contract. Usually performance bonds are required for 10% of the contract value and it is only issued in conjunction with the policy covering the contract works.