The Bond is a contract by which the obligations assumed by a person or company in a contract are guaranteed by an insurer, so that in the event of default or insolvency of the original obligor, the insurer enters as guarantor and compensates the loss caused to the affected by non-compliance.

• Bid Bonds: guarantee that is required of a company to be able to participate in a contest or tender. If the company wins the tender and is awarded the contract, guarantees that it will honor the offer it made without modification. In the case of works for the state, the amount of the tender bond must be not less than 1% of the amount of the bid submitted.
• Advance Payment: guarantees to the owner of a project that the advance delivered to the contractor will be correctly utilized in accordance with the contract.
• Performance Bonds: guarantees to the owner of a project that the contractor will faithfully comply with his construction contract, that is, build within the agreed time, at the agreed prices, with the agreed materials and specifications, in addition to any other commitment established by the contract. In government projects, the performance bond must be for 4% of the value of the contract. In private sector projects, it can be for any amount that is agreed in the contract.
• Hidden Defects or Vice: bond usually rendered at the end of the work or project as a requirement for the last payment to be made. It guarantees that the contractor will assume responsibility and repair on his own account any defects or vices that are not evident at the time of receipt of the work.