Surety Bond Brokers

Bond Definitions

  • Surety Bonds – three party agreements in which the issuer of the bond (the surety) joins with the second party (the principal/contractor) in guaranteeing to the third party (the obligee) the fulfillment of an obligation on the part of the principal
  • Bid Bonds – provides financial assurance that the bid has been submitted in good faith. A bid bond assures that the contractor will enter into the contract at the bid price. It also assures that the contractor will be able to obtain the required performance/payments bonds
  • Performance Bonds – Guarantees the contractor will complete the project per the terms of the contract
  • Labor & Material Payment Bonds – assures that the suppliers, laborers, and subcontractors will be paid if the contractor defaults
  • Maintenance Bonds – guarantees defective workmanship and materials for a stated period of time
  • Subdivision Bonds – local authorities require a guarantee that the landowner completes mandatory public improvements that builders & developer make to their property
  • Court bonds – also known as fiduciary bonds; guarantee the performance of fiduciary services in compliance with a court order (e.g. Guardianship Bond, Executor Bond, etc.)
  • License and Permit Bonds – required by State and local officials (to engage by a certain business)
  • Site Improvement Bonds – Required to ensure public property will be restored upon the completion of a private project
  • Supply Bonds – secure payments to suppliers
    Last Updated: November 4th, 2014 |
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