A surety bond or surety is a promise to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. The surety bond protects the obligee against losses resulting from the principal's failure to meet the obligation. Bonds are required in various situations and by many different entities, though usually they’re required by governing bodies and lending institutions. Having the right bond in place can be crucial to the success of your business.
The construction industry uses bid bonds (guarantee that a contractor has the capacity to provide the final payment & performance bond and will enter into a contract if awarded the bid), performance bonds (guarantee that a contractor will perform the work as specified by the contract), payment bonds (guarantee that a contractor will pay for services and materials), and maintenance bonds (guarantee that a contractor will provide facility repair and upkeep for a specified period of time).
The US Court system also relies heavily on bonds for multiple applications. Appeal bonds, supersedeas bonds, attachment bonds, and replevin bonds are just a few of the more commonly used court bonds, and each guarantees that persons whom such courts have entrusted with the care of others’ property will perform their specified duties faithfully.
46 COVE CIRCLE
P.O. BOX 8190
BROWNSVILLE, TEXAS 78521
P: (956) 542-4387
F: (956) 542-8335
follow us on Facebook
CALL US OR CONTACT US BELOW FOR A QUOTE