Primarily, Surety Bonds go to the benefit of the obligee. So if you are an obligee such as an owner of a project that is being built or a owner where a company is supplying you with critical goods or services where the non-performance or delayed performance of the contractor or vendor can cause serious financial damages and consequences, then a bond would help protect you against these damages.
Additionally, surety bonds, in the way of payment bonds on construction projects go for the benefit of the subcontractors and suppliers on a bonded project. The Federal government under the Miller Act established laws that require federal construction projects have Performance and Payment Bonds from the contractor performing the work. These bonds protect the public from non-performance while also protecting the subcontractors and suppliers from non-payment by the contractor.
Surety Bonds also benefit project owners and lenders from liens filed on the projects by the contractor’s subcontractors and suppliers. They will, thus, keep the projects unencumbered and lien-free.
One of the biggest benefits for the bond principal is saying that they are bonded or bondable. This prequalification feature is one pervades the construction industry.
Here at the ProSure Group, we’ve helped hundreds and hundreds of contractors from getting their first bond to growing and expanding a large surety program for them. Our experts are here to help you. Feel free to start by completing a simple application or giving us a call for a quick consultation.
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