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A Bond is where the bond issuer guarantees to the obligee (the project owner) that the principal (the contractor) is capable of performing the contract in accordance with the contract documents. Performance of the contract, which is the subject of the bond, determines the rights and obligations of the bond and the obligee.
Here are the nine different families of bonds:
- Surety Bonds
- Fidelity Bonds
- Public Official Bonds
- Judicial Bonds
- Fiduciary Bonds
- License and Permit Bonds
- Contract Bonds (Bid and Performance Bonds)
- Miscellaneous and Federal Bonds
- Notary Bonds
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