Surety bonds help guarantee payment and completion of work. Essentially, the bond is between three parties. For example, in a construction contract, the contractor and a project owner are considering doing work together, but the project owner needs some extra guarantees that the work will be finished. The contractor, project owner and a surety company enter into a surety bond. Under the bond, the surety company promises that the work will be completed.
Write the name of the principal on the line designated for the “Principal” of the contract. Include the principal’s mailing address. Surety bond forms have blank lines preceded or followed by “as Principal” or similar language.
Write the name of the surety company on the line designated for the surety. Include the surety’s mailing address. Like the line for the principal, look for a line preceded or followed by “a surety company” or similar language.
Write the name of the obligor, or project owner, on the line preceded or followed by “are held and firmly bonded to.”
Write the amount of money at issue in the bond on the line designated for the bond amount.
Sign the bond in the presence of a notary public and have the bond notarized. The principal and surety company must sign the bond.