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surety & bonds

Purpose of a surety bond

A surety bond is an agreement between three parties: the surety company (the guarantor), the contractor (the principal), and the project owner (the obligee). A surety bond serves as a guarantee for the obligee that if the principal does not meet the expectations outlined in the contract, then the guarantor will reimburse the obligee in full. Surety bonds:  


  • Protects the obligee from any default from the principal 
  • Establishes expectations for the principal and obligee


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