Surety Bonds and Contract Bonds | Carriage Insurance
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Surety and Contract BONDS

A handshake and your word can go a long way in the business world. Bonds can take it one step further. When you need to take that extra step, surety and contract bonds help you clearly define each party’s commitment.

 

Surety bonds

Simply put, a surety bond is a contract among at least three parties:

  • The obligee, who is the recipient of an obligation
  • The principal, the primary party who will perform the contractual obligation
  • The surety, the party who assures the obligee that the principal can perform the task.

Surety bonds protect all three parties by demonstrating the principal’s credibility and outlining what is expected and what will be completed.

 

Contract bonds

Contract bonds are used primarily in the construction industry. They serve as a contract between a surety to a project’s owner (the obligee) that a general contractor (principal) will adhere to the provisions of a contract. Contract bonds can include bid bonds, performance bonds, payment bonds and maintenance bonds.

 


 

WHY CARRIAGE?

Bonds give you the peace of mind that comes from knowing the details of a project and a specific timeline for its execution. The specialists at Carriage can draft a bond that leaves all parties feeling confident that their interests are protected and that your word is just as good as a contract.