construction bond
[kənˈstrʌkʃən bɑːnd]
nounpl: construction bonds
caução de construção / garantia de construção / fiança de construção
1. A financial guarantee or surety bond required by property owners or developers to ensure that construction work is completed according to contract specifications and that workers and suppliers are paid
The contractor had to provide a construction bond before starting work on the new commercial building.
O empreiteiro teve que fornecer uma garantia de construção antes de iniciar o trabalho no novo edifício comercial.
2. A type of performance bond that protects the project owner from financial loss if the contractor fails to complete the work or meet contractual obligations
The construction bond covered the full cost of the project in case of contractor default.
A garantia de construção cobria o custo total do projeto em caso de inadimplência do empreiteiro.
3. Security posted to ensure compliance with construction codes, permits, and regulations during the building process
A construction bond was required by the municipality to guarantee adherence to zoning laws.
Uma caução de construção foi exigida pela prefeitura para garantir a conformidade com as leis de zoneamento.
Construction bonds are essential in both Brazilian and American construction industries, serving as a legal requirement in most major projects. In Brazil, they are regulated by ABNT (Associação Brasileira de Normas Técnicas) and are particularly important in protecting consumers from construction fraud and incomplete projects. In the USA, construction bonds are mandated by federal law for public construction projects and are commonly required for private projects as well. The system reflects the construction industry's need for financial accountability and consumer protection across both countries.
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