There are a variety of types of bonds. When most people think of bonds, they think of legal trouble and getting arrested, whether it be yourself, a friend, or a loved one. There are several different types of bonds, but all bonds have one thing in common: they are essentially a form of collateral to ensure that both parties hold up their side of a contract, or their end of the deal. Surety bonds are a different kind of bond that is common within the construction industry.
What Is a Surety Bond?
A surety bondsman in Lakeland commonly serves clients in the construction industry. What is a surety bond, you may be wondering? A surety bond is an agreement between three parties. The first party is the principal. This person is usually a business owner who is guaranteeing a quality of work that will be done in the future. The second party is the obligee. This party is requiring the principal to purchase a bond so that they do not incur financial loss. This is a protective measure for themselves. The surety issues the bond and guarantees the obligee that the principal has the financial ability to make good on the bond. A surety bondsman acts as the middleman.
Who Requires the Services of a Surety Bondsman?
The construction industry is most commonly known for requiring a surety bond. Most of the time, it is obtained by the owner to show good faith to their client. Government agencies require surety bonds before construction work begins. In reality, this protects both parties. It’s a contract, where both sides have something to lose.
A bond service company can issue a surety bond. Bondsman are on call 24/7 to meet your bond needs at any time of day or night.
Be the first to like.