Get Performance Bond Form

However, to understand surety bonds, it may be helpful to break them down into four categories: contract bonds, judicial bonds, probate court bonds, and commercial bonds. In addition to these four categories, it's important to understand the basics of what surety bonds are, as well as how to obtain them.

Bonds have three important components; the person performing the service is the principal, the benefactor of the service is the obligee, and the bank or insurance company that guarantees that the principal will fulfill the contract is the surety.

First, write the name of the obligor or project owner on line preceded by "are held and firmly bonded to." Then write down how much money is at issue in this bond. Once that's done sign your signature where requested with a notary public present who will then make sure it was signed legally.

There are a variety of businesses that require performance bonds. The most common are construction companies which provide construction services to government entities. An example of this would be a general contractor building a school or an electrical contractor upgrading the lighting systems at a retirement home.

REINSURANCE AGREEMENT FOR A BONDS STATUTE PERFORMANCE BOND.

There are two types of performance bond: "On Demand" and "Conditional".

There are two types of performance bond: "On Demand" and "Conditional".

A performance bond is a three-party arrangement between you (the principal), the surety and the project owner (also called the Obligee). In essence, the surety company is agreeing to guarantee that your company will perform its contractual obligations to the project owner.