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[Music] guarantees in construction contract six types of construction guarantees and what they protect welcome to halshyway channel if you are new to this channel make sure to hit the subscribe button to get related videos in this video we will see 6 types of construction guarantees and what they protect guarantees in construction business are bonds that offer security for a payment made in case of contractors failure or non-performance a construction guarantee protects the client from additional expenses caused by the contractors failure to perform his obligations in accordance with conscience of the contract of course security bonds and bank guarantees may be either conditional or unconditional they are normally issued by banks or insurance companies a conditional bond or bank guarantee can only be called if there is a real proof of default and damage and the payments will only cover the approved loss experienced by the owner out to the amount mentioned in the bond or bank guarante