Overview: Bonds
Understanding how bond documentation is tracked in ConstructionOnline™
A construction bond is a financial guarantee that a contractor will meet contractual obligations on a project. The guarantee is backed by a surety (the bonding company), which may step in to arrange completion or compensate the project owner if those obligations aren't met.
⚠️ Important: Bonds are not insurance coverage.
Insurance covers losses or accidents. A bond confirms contractual performance requirements.
In ConstructionOnline, bond records provide a central place to store guarantee documentation and expiration dates. When the OnGuard™ Insurance & Certificates feature is used, the platform displays the current standing of a bond based on its recorded dates and active status.
Why Bonds Are Tracked
Bond documentation is often required before a contract is executed or work begins, and may be reviewed during payment or compliance verification. Keeping bonds recorded in ConstructionOnline allows teams to confirm these requirements without locating external paperwork.
Recording bonds helps teams:
- Confirm required guarantees are documented
- Provide documentation when requested
- Identify upcoming expirations
- Maintain project history
How Bond Status Is Determined
ConstructionOnline determines the displayed bond standing using:
- Active / Inactive Setting
- Effective Date
- Expiration Date
Other fields—such as Bond Type, Number, Classification, and Agency details—are stored for reference and reporting.
Status Indicators
Bond status is shown using color indicators in the "Expiration Breakdown" table and Expiration Tracker.
🔵Not Yet Effective:
The bond start date hasn't arrived
🟢Active:
The bond is valid
🟡Expiring Soon:
The bond is approaching expiration date and may require updating
🔴Expired:
The bond is no longer valid
The "Expiration Breakdown" table displays all four statuses, while the Expiration Tracker shows active, expiring, and expired states.
For additional context about credential tracking, see "Guide to Tracking Insurance & Certificate Expirations."
Using Bond Records During Projects
Bond records serve as documentation for contractual requirements. If a bond is no longer current, updated documentation can be requested before continuing work or processing related approvals.
Keeping bond records in one location helps avoid:
- Missing required project guarantees
- Delays locating paperwork
- Maintaining duplicate records outside of the platform
Common Bond Types
Projects may track different types of bonds, including:
- Bid Bond: financial assurance that a contractor's bid is submitted in good faith and that the contractor will enter into the contract at the bid price if awarded the project
- Performance Bond: ensures that the contractor fulfills their contractual obligations, including completing the project according to the agreed-upon specifications, schedule, and materials.
- Payment Bond: issued in conjunction with a performance bond that guarantees that the contractor will pay all subcontractors, laborers, and material suppliers for their work and materials on the project.
HAVE MORE QUESTIONS?
- If you need additional assistance, chat with a ConstructionOnline Specialist by clicking the orange Chat icon in the bottom left corner or visit the UDA Support Page for more options.