What is a Performance Bond? A performance bond is a financial guarantee. It ensures that a contractor completes a project as promised. If the contractor fails, the bond protects the project owner. It covers losses or helps complete the work. Performance bonds are commonly used in: Construction projects Government contracts Infrastructure work Supply and service agreements Why Performance Bonds Matter Here’s why buyers, contractors, and government bodies use them: Protects pr

What Is a Surety Bond? A surety bond  is a financial guarantee that ensures a contractor, supplier, or service provider fulfills their obligations.  If they fail to deliver, the surety company compensates the project owner.  Surety bonds are now widely used across government tenders, infrastructure projects, supply contracts, and service agreements.    Why Choosing the Right Surety Bond Matters  Every project has different risks and requirements.  Choosing the wrong bond can

What is a Bid Surety Bond? (Meaning)  A Bid Surety Bond  is a financial guarantee submitted while applying for a tender.  It replaces the traditional Earnest Money Deposit (EMD)  and ensures the bidder will accept the contract if awarded.  Instead of blocking cash in EMD, the bidder pays a small premium and gets a surety bond that serves the same purpose.  Bid Surety Bonds are recognized and accepted under India’s new procurement guidelines, making tender participation easier

Discover key types of surety bonds in India — Bid Bonds, Performance Bonds, Advance Payment Bonds & more. Learn how they help contractors win projects and protect project owners.

Introduction The landscape of infrastructure financing in India is undergoing a quiet yet significant shift. For years, contractors and project developers have relied almost entirely on bank guarantees to meet contractual obligations. But that is changing. With IRDAI’s new reforms enabling insurance companies to issue surety bonds, we are seeing a new mechanism designed to improve liquidity, widen access, and unlock project potential. What is the Reform? IRDAI introduced the