What is a Surety Bond? Where can I get a Construction Bond?
Bonds are becoming more common in our society today. You might be wondering what a surety bond is and why they are necessary. Individual business owners, corporations, federal and state governments and municipalities may request or require a surety bond of some sort before entering into an agreement in order to secure the investment. Surety bonds can act as reinforcement for obligatory relationships between parties and/or a support for persons acting under a license or permit. A surety bond is a contract drawn up between three parties: the surety, obligee and principal. The surety company promises to become responsible for the principals commitment in the event of a default. The surety may either pay the agreed bond amount to fulfill the contract requirements or arrange to have the contract upheld by another. The bond acts as extension of credit for the principal, protecting the investment by the obligee. Construction bonds are one of the most common surety bond categories today. Gener
