Surety

What is the difference between performance, payment, and bid bonds in Georgia?

Performance bonds guarantee that a contractor will complete a project per contract terms. Payment bonds guarantee that subcontractors and material suppliers will be paid. On Georgia public works projects, both are typically required by OCGA 13-10-2 for contracts above a certain threshold. Private owners on commercial construction projects also commonly require performance and payment bonds to protect against contractor default. Bid bonds (also common) guarantee that a contractor who wins a bid will enter the contract at their bid price. Each type serves a different protection purpose and is purchased separately.

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What is the difference between performance, payment, and bid bonds in Georgia?

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