Common Contracts
1 similar null contracts
on Public ProjectsMarch 19th, 2019
A bond is a contract or a guarantee agreement, which contains the promise of a third party, a bonding company or surety, to pay a fixed sum if certain acts are not performed. This typically relates to non-performance or non-payment. A surety bond is not an insurance policy. Rather, a surety bond is a guarantee that the contractor, called the principal in the bond, will perform the obligation stated in the bond. For example, the obligation stated in a bid bond is that the principal will honor its bid; the obligation in a performance bond is that the principal will complete the project; and the obligation in a payment bond is that the principal will pay subcontractors and suppliers.
