Contract Surety Bonds
Contract bonds, used heavily in the construction industry, are a guarantee from a Surety to a project's owner (Obligee) that a general contractor (Principal) will adhere to the provisions of a contract.
Included in this category are: bid bonds (guarantee that a contractor will enter into a contract if awarded the bid), performance bonds (guarantee that a contractor will perform the work as specified by the contract), payment bonds (guarantee that a contractor will pay for services and materials), and maintenance bonds (guarantee that a contractor will provide facility repair and upkeep for a specified period of time). There are also miscellaneous contract bonds that do not fall within the categories above, the most common of which are subdivision and supply bonds.
Read more about this topic: Surety Bond
Famous quotes containing the words contract, surety and/or bonds:
“A contract for better for worse is a contract that should not be tolerated.”
—George Bernard Shaw (1856–1950)
“You are our surety to immortal life,
God’s hatred of the universal stain—
The heritage, O Fear, of ancient strife
Compounded with the tissue of the vein.”
—Allen Tate (1899–1979)
“For, truly speaking, whoever provokes me to a good act or thought has given me a pledge of his fidelity to virtue,—he has come under the bonds to adhere to that cause to which we are jointly attached.”
—Ralph Waldo Emerson (1803–1882)