Surety Bond Benefits

Bonds play a major role in today’s market. Bonds become more essential in construction industry for completion of their construction projects. Underwriting bonds involve great risk. But the surety company will write these bonds for the benefit of their customers. If bonds have been underwritten, it has following benefits. • The obligee gets a guaranteed performance of the contract from the principal and the surety. • These bonds enforce the contractor to complete the contract with in the stipulated time and contract money. • This bond guarantees the payment from the obligee to the contractor and from the principal to the subcontractor. • This bond ensures that the supplier will furnish the material and labor to the principal as signed in the contract. • I View the rest of this article