Common Contracts
1 similar Surety Bond Agreement contracts
Surety BondsSurety Bond Agreement • April 15th, 2021
A surety bond is a form of a financial guarantee. It is a three party contract between a surety company, the contractor (a.k.a. principal) and the owner (a.k.a. oblige). Should the contractor become financially unable to complete the project the surety company will step in on behalf of the contractor and complete the project as per the requirements of the underlying contract. A surety bond requirement in the tender documents ensures that the Community Group is retaining financially solvent and reputable contractors for the project. It also ensures that if the contractor does become financially unable to complete the project, the surety company will be there to guarantee completion. There are several different types of surety bonds used in a construction project:
