DEFINITIONS AND TERMS

In a realistic, discussed, industry standard, or typical time frame

Requesting a product or service with malicious intent or no intent to purchase.

This refers to a contractor license bond is a financial guarantee, often required for licensure, that ensures a contractor will adhere to licensing regulations and protect the public from financial loss if they violate the terms of their license. It's a surety bond that promises to pay damages if the contractor fails to comply with state or local laws.

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PURPOSE:

The primary goal of a contractor license bond is to protect the public from financial harm caused by a contractor's failure to meet their obligations under the law

​​This refers to a bid bond is a type of surety bond that guarantees a contractor's bid is genuine and that they will complete the project if awarded. It ensures the project owner (the obligee) that the contractor will provide a performance bond and begin work at the agreed-upon price and terms. If the contractor backs out or fails to secure a performance bond, the obligee can make a claim on the bid bond to cover the costs.

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PURPOSE:
Bid bonds are designed to protect project owners from potential financial losses if a contractor who wins a bid doesn't follow through

This refers to a supply bond is a type of contract surety bond that guarantees a supplier will deliver materials, equipment, or supplies as agreed in a contract. It assures the purchaser that they will receive the goods as promised or be financially compensated if the delivery falls short.

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PURPOSE:

It protects the purchaser from potential financial losses if the supplier fails to deliver the goods as specified in the contract.

This refers to a maintenance bond, also known as a warranty bond, is a type of surety bond that guarantees a contractor will maintain a project for a specified period after completion, ensuring the work remains free from defects in workmanship and materials.

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PURPOSE:

The primary purpose of a maintenance bond is to provide financial security to the project owner, ensuring that any issues that arise within the warranty period are addressed.

This refers to a warranty bond, also known as a maintenance bond, is a type of surety bond that guarantees a contractor will maintain a project for a specified period after completion, ensuring the work remains free from defects in workmanship and materials.

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PURPOSE:

The primary purpose of a warranty bond is to provide financial security to the project owner, ensuring that any issues that arise within the warranty period are addressed

A surety bond is a three-party financial guarantee where one party (the surety, often an insurance company) promises to pay a second party (the obligee) if a third party (the principal) fails to meet a specific obligation. It acts as a safety net, ensuring the obligee receives compensation or that the obligation is fulfilled if the principal defaults

This refers to a payment bond is a type of surety bond that guarantees payment to subcontractors, laborers, and material suppliers on a construction project. It ensures that these individuals will be paid for their work and materials if the general contractor or another party fails to do so. PURPOSE: The primary purpose of a payment bond is to protect subcontractors, laborers, and material suppliers from the risk of non-payment by the contractor

A government entity responsible for maintaining and improving the infrastructure and services essential to a community's well-being. They handle a wide range of activities, including managing roads, bridges, water and sewer systems, and other public facilities. Essentially, the DPW ensures the basic infrastructure that supports a community's quality of life is in good working order.

This refers to a bond issued by a bank or other financial institution, guaranteeing the fulfillment of a particular contract.

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PURPOSE:

A performance bond's primary purpose is to safeguard a project owner from financial losses and ensure a contractor fulfills their contractual obligations. It acts as a financial guarantee, promising that the project will be completed according to the contract's terms and within the agreed-upon timeframe and price.

This refers to streamlining bureaucratic processes and regulations that cause unnecessary delays or obstacles, ultimately aiming for faster and more efficient project completion.

A subcontractor (company or individual) specializing in a specific aspect of a project, like plumbing, electrical, or HVAC, who is viewed as a collaborative partner rather than just a contractor.

The individual B FREE Construction is doing business with. This person has a corresponding email/phone / membership information.

The individual or entity with legal rights and control over a property or project, including land, buildings, or a construction project, who funds the project and makes key decisions like hiring contractors and selecting materials.

A construction milestone when a project is nearly finished and can be used for its intended purpose. It's a critical point in the project that triggers legal and contractual obligations, such as warranties and final payments.

A formal agreement to modify a construction contract. It can change the scope of work, timeline, or budget of the project.

A document that modifies, clarifies, or adds to the original contract. Addendums are often issued during the bidding process and become part of the contract when construction begins.