Performance Bonds in Detroit, Michigan
What is a Performance Bond?
Simply put, performance bonds guarantee the satisfactory completion of a project or task. They are issued by a bank or surety agency. They give obligees the financial security to safely invest their money, and help principals get the monetary backing they need to fulfil their obligations.
Understanding Surety Bonds
The world of bonds is complicated and can often seem overwhelming. Don’t try to navigate it alone. Our experienced team will help walk you through the steps of contracting a bond. To get you started, we have provided a summary of each involved party and their obligations and expectations.
Bonds are agreements that are defined by obligations. The principal is the party that is responsible for fulfilling any commitments. Most commonly, their requirement is to complete a specific task or operate their business in a way that obeys by laws and regulations. They are also the party who usually contact a bonding company.
As the name implies, an obligee is the party who is owed the obligation executed by the principal. This party can be anyone from the general public to a government agency. They either benefit from the principal conducting their business according to the law or have hired the principal to complete a specific task.
This is the party that acts as an intermediate between the aforementioned pair. The surety provides a financially backed guarantee that the principal is capable of fulfilling their obligation. They conduct an extensive inspection of the principal’s qualifications for completing their commitments and obtaining a surety bond. In the event where a principal has failed to fulfill their obligation, they act as a recourse for the obligee.
We Are Here to Help
At Goldfarb Bonding Agency, we have provided reliable surety services for over 100 years. We combine time-tested service with innovative, modern efficiency. Call us today and get a reliable bond that guarantees your financial security.