Surety Bonding - Facility Structure

Most performance related bonding requirements can be facilitated, including;

  1. Contract performance bonds
  2. Bid bonds
  3. Advance payment bonds
  4. Retention bonds
  5. Off-site material bonds
  6. Maintenance bonds (defects liability period)

Parties to a surety bonding arrangement are:

  1. Contractor
  2. Surety (Bond issuer), and
  3. Obligee (Customer)

with the relationship working as shown in this diagram

When acceptance of a bond as the primary instrument is an issue we are able to obtain a fronted bank guarantee whereby the bank accepts the surety bond, solely, as security for the issued bank guarantee. There is no additional relationship for the contractor, although there is an additional layer of cost for the bank service.