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Surety Bond What are bonds?

April 26, 2017bonds surety bond

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Surety Bond What are bonds?

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Answer. The Surety guarantees to the obligee (usually the owner) that the principal will perform the job. For example, Surety guarantees to the owner of a project (obligee) that the contractor (principal) will perform the plumbing according to the specifications. A Performance Bond guarantees completion of a job. A Payment Bond guarantees that suppliers and subcontractors are paid.