If changes in work may cause an increase or decrease in the amount due, the contractor shall furnish proportionate additional ______ bond.

If changes in work may cause an increase or decrease in the amount due, the contractor shall furnish proportionate additional ______ bond.

• A. Payment bond
• B. Fidelity bond
• C. Performance bond
• D. Maintenance bond

Answer: (C)

When the scope of work changes and the contract amount can go up or down, the owner needs added assurance tied to the contractor’s ability to finish the revised project. A proportional increase in the bond amount is required to cover the greater risk and obligations that come with the taller contract value. This bond—the performance bond—guarantees that the contractor will complete the work according to the contract terms, even after changes. It provides the owner with a safety net to ensure completion if the contractor encounters difficulties or defaults on the updated scope. The other bonds serve different protections: a payment bond guarantees that subcontractors and suppliers will be paid, a maintenance bond covers defects after completion, and a fidelity bond protects against employee dishonesty. Those do not directly address the guarantee of completing the expanded scope, which is why the performance bond is the appropriate choice in this context.

When the scope of work changes and the contract amount can go up or down, the owner needs added assurance tied to the contractor’s ability to finish the revised project. A proportional increase in the bond amount is required to cover the greater risk and obligations that come with the taller contract value. This bond—the performance bond—guarantees that the contractor will complete the work according to the contract terms, even after changes. It provides the owner with a safety net to ensure completion if the contractor encounters difficulties or defaults on the updated scope.

The other bonds serve different protections: a payment bond guarantees that subcontractors and suppliers will be paid, a maintenance bond covers defects after completion, and a fidelity bond protects against employee dishonesty. Those do not directly address the guarantee of completing the expanded scope, which is why the performance bond is the appropriate choice in this context.