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
- Surety/Insurance Company/Bank
Types of Bond
- Advance Payment Bond
- Performance Bond
- Counter Indemnity Bond
- Credit Bond