TEN THINGS YOU NEED TO KNOW ABOUT SURETY BONDING
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www.surety.org WHAT IS SURETY?
A surety bond is a three arty agreement 1 here the surety com any assures the obligee (o ner) that the rinci al (contractor) ill erform a contract. Surety bonds used in construction are called contract surety bonds.
TYPES OF BONDS
There are three rimary ty es of contract surety bonds. The 2 o assures that the bid has been submitted in good faith and that the contractor intends to enter the contract at the rice bid and rovide the re uired erformance and ayment bonds. The er or e o protects the owner from financial loss in the event that the contractor fails to perform the contract in accordance ith its terms and conditions. The y e t o assures that the contractor will pay certain workers, subcon tractors, and materials suppliers.
WHO IS SURETY?