For many high-value or time-sensitive projects, a customer (the obligee) will ask their supplier (the principal) for a financial guarantee that they will meet their obligations. The supplier(s) will then approach a third-party bond provider (the surety) to act as a guarantor that they will complete the work, and who will agree to pay a financial penalty should the supplier fail to meet their obligations. This gives the customer an agreed level of protection against any losses they may incur as a result of being let down by a supplier.
At The Channel Partnership, we’ll talk to you about the size and scope of your project, the service you will be providing and the guarantees that your customer wants and then our team of bond specialists are happy to talk you through the bond process step-by-step. Call us today on 01275 817320.
The Channel Partnership bond brokers can help you with:
- guidance on bond wording
- availability of and pricing of bonds
- bond underwriting process
- bond issuance and documentation
- bond termination