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