Contract bonds guarantee the performance of obligations covered by a written agreement between two parties. The most common types include bid, performance and payment bonds. Surety bonds provide financial security to project owners that contractors will perform the work and pay specified subcontractors, laborers, and material suppliers.
A surety bond is a contract among at least three parties:
The Principal - the primary party who will be performing a contractual obligation
The Obligee - the party who is the recipient of the obligation
The Surety - who assures that the principal's obligations will be performed.
Bid Bond - assures that bid has been submitted in good faith and that the contractor will enter into the contract at the price bid and provide the required performance and payment bonds.
Performance Bond - protects the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions.
Payment Bond - assures that the contractor will pay specified subcontractors, laborers, and material suppliers on a project.
License & Permit Bond - assures financial remedy to injured parties and often required by various public entities to guarantee compliance with codes and regulations.
Notary Bond - assures financial remedy to the public for state regulated duties of a Notary.
Judicial Bond - guarantee obligations required in litigation in administrative hearings and civil courts.
And more - while there are only a handful of basic types of contract bonds we can help with the multitude of other bonds and assurance your company might need.