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Surety Bond Benefits

Bonds play a major role in today’s market. Bonds become more essential in construction industry for completion of their construction projects. Underwriting bonds involve great risk. But the surety company will write these bonds for the benefit of their customers. If bonds have been underwritten, it has following benefits.

• The obligee gets a guaranteed performance of the contract from the principal and the surety.
• These bonds enforce the contractor to complete the contract with in the stipulated time and contract money.
• This bond guarantees the payment from the obligee to the contractor and from the principal to the subcontractor.
• This bond ensures that the supplier will furnish the material and labor to the principal as signed in the contract.
• In default of the contract, the obligee can sue the principal i.e. the obligator and the also the surety.
• The obligee can enforce the surety to complete the contract with in the stipulated time and contract money in failure of the principal for completion.
• The underwriter of the surety company can provide financial, technical assistance to the contractor.

A contractor is a person who undertakes the risk of completion of contract with in stipulated time and contract price. The contractor performs a contract for a price consideration. The contractor guarantees the owner that he will finish the contract with in stipulated time and contract value, through issuance of the bond. In default of the contractor, the obligee will sue him against the court of law. This bond ensures the contractor has guaranteed performance of the contract.

About the Author: Ron Victor is a SEO copywriter for Surety Bond Company . He written many articles in Contract Surety Bonds and Auto Dealer Bond topics. For more information visit Customs Bond . Contact him at

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