What type of bond protects the owner from default on a job according to the agreement by the landscape contractor?

A performance bond is a type of surety bond that guarantees that a contractor will complete a project according to the terms of the contract or agreement. In the context of landscape contracting, this bond ensures that if the contractor fails to fulfill their contractual obligations—such as completing the landscaping work on time and to the specified quality—the bond will provide financial compensation to the project owner. This means that the owner is protected from financial losses resulting from the contractor’s default, ensuring that there is a safety net in place for the successful completion of the job.

A payment bond, on the other hand, focuses on ensuring that subcontractors and suppliers get paid for their work and materials. A labor bond pertains to labor costs and guarantees payment for labor provided, while a bid bond secures the bidding process and guarantees that the contractor, if awarded the job, will sign the contract and provide the necessary performance and payment bonds. Each of these other types of bonds serves different functions in the construction and contracting realm, making the performance bond specifically relevant for protecting the owner against contractor default.