Construction Bond

Business, Legal & Accounting Glossary

Definition: Construction Bond


Construction Bond


Full Definition of Construction Bond


A form of a surety bond specific to construction that guarantees the performance of the builder, or principal, according to project specifications. The bond amount, or penal sum, is stated in terms of the cost to complete the project. If the principal fails to deliver upon the contract, the owner, or obligee may sue the surety and the principal for the means to complete of the project.


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Construction Bond. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 https://payrollheaven.com/define/construction-bond/.
Chicago Manual of Style (CMS):
Construction Bond. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/construction-bond/ (accessed: March 29, 2024).
American Psychological Association (APA):
Construction Bond. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/construction-bond/

Definition Sources


Definitions for Construction Bond are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.