Get Top Construction Quotes Easily with Performance Bond Secrets

How Performance Bonds Work

A performance bond involves three parties: the obligee (the project owner), the principal (the contractor), and the surety (the issuer of the bond). The surety guarantees the project owner that the contractor will fulfill their contractual obligations. If the contractor defaults, the surety steps in to cover the financial losses or find another contractor to complete the project. This safety net is invaluable for project owners who want to mitigate risks and ensure project completion without financial setbacks.