WHAT ARE BONDS?
Bonds are a written agreement in which one party, the surety, guarantees the performance or honesty of a second party, the principal (obligor), to the third party (obligee) to whom the performance or debt is owed.
WHAT ARE PERFORMANCE BONDS?
Performance Bonds cover performance of the terms of a contract. These bonds frequently incorporate payment bond (labor and materials) and maintenance bond liability. This protects the owner from financial loss, should the contractor fail to perform the contract in accordance with its terms and conditions.