What Is A Surety Bond? A Surety Bond is a legal obligation involving a three-party agreement between the principal (contractor), the employer (obligee/project owner), and the surety/guarantor. Surety Bonds protect the employer from financial loss in the event of default regarding contractual obligations, as detailed in the Bond wording and contract, that are not fulfilled.…
When Can I Release A Performance Bond? A Performance Bond is released when all the underlying covenants within the Bond wording and associated contract are satisfied. This is usually when practical completion (PC) of the contract is achieved, or at the end of the making good of defects (MGOD) period. In this article, we will…
How Long Does A Performance Bond Last? When taking out a Performance Bond, many contractors may wonder about their validity period and when they expire. The duration of a Performance Bond varies and is greatly dependent on how long it takes the contractor to achieve practical completion or make good of defects. Some Performance Bonds…
