It’s a three-party agreement between you (the Principal), the surety company and the owner (or oblige). The Obligee could be any number of entities, ranging from a city, state, general contractor, court and more.
During this time of year in the Treasure Valley, for example, we see a rise in the need for bonding. Contractors working on public works projects will be asked to provide bid bonds while they are bidding for projects. They’ll also be required to provide performance and payment bonds if they are the successful bidder.
Many area cities require small commercial bonds for unexpected projects or jobs. Security guards and security companies need bonds to acquire their licenses in the City of Boise. Most street vendors (such as the food trucks, snow shacks and farmer’s market booths) are required to have bonds as part of their licensing. Door to door solicitors might also need a bond.
Most commercial bonds are quick and painless to obtain.
There are so many different types of surety bonds. If you have questions, please give us a call!