How do bonding requirements for public contracts typically vary?

Bonding requirements for public contracts are typically mandated by law, which ensures a level of standardization and protection for public interests. These regulations often specify the types of bonds that must be obtained, such as performance bonds or payment bonds, based on the nature of the contract and the amount involved. This legal framework is designed to protect the public from risks associated with contractor default, ensuring that funds are available for project completion and adherence to contractual obligations.

In contrast, private contracts may not have such rigid requirements, leading to variations in bonding practices that depend on individual agreements between parties. Public contracting often comes with additional scrutiny and accountability, which is why the law specifies bonding requirements to safeguard public projects and investments.