Smith-Manus services

Construction Bonds

Performance and Payment Bonds

There are many different types of contractual obligations that require performance and payment bonds. The most common being the traditional construction process where a general contractor agrees to undertake a project such as a building, highway, utility line, etc. and the subcontractor trades work under the GC. However, this procurement process is ever changing. We now see owners breaking down major projects into numerous bid packages with a bonding requirement for each trade. The federal government is now awarding construction work under master contracts that may extend multiple years where bonding is required in increments throughout the term of the contract.