What does Construction Bond mean? Read on to discover the definition & meaning of the term Construction Bond - to help you better understand the language used in insurance policies.
A construction bond is a type of surety bond used in the field of construction to protect the insured against the possible loss of their investments in construction projects due to a failure of the construction company to fulfill their obligations. Construction bonds are similar to insurance but not exactly the same. If the construction company completes the project as expected, then the bond is generally voided.
We hope the you have a better understanding of the meaning of Construction Bond.