Bond is a written and signed undertaken made by one party called the “Surety” to pay a certain amount of money to the “Principal” otherwise known as “Employer” if certain conditions are not fulfilled within a stipulated period of time by the “Contractors” also known as the Insured.

Bond can be refers to as a surety the principal of a project ask from a particular contractor.

Parties to a Bond

• Contractors/Insured
• Principal/Employer
• Surety/Insurance Company/Bank

Types of Bond

• Advance Payment Bond
• Performance Bond
• Counter Indemnity Bond
• Credit Bond