A bond is a three-party contract in which the Surety guarantees the performance, or honesty, of a second party, the Principal, to the third party, the Obligee, to whom the performance or debt is owed. Bonds are key to inducing the Obligee to contract with the Principal by demonstrating the Principal’s credibility and guaranteeing performance per the terms of the agreement.
For more than 75 years Offenhauser & Co. has had a business unit dedicated to providing a broad range of federal, state and local bonding services. We represent the country’s top surety companies, so we can provide bonds to a wide range of businesses and individuals with varying credit situations. As a member of the National Association of Surety Bond Producers, we bring expertise to counsel clients regarding financial statement analysis, business continuity, job costing, and contract review. We have helped many clients expand their bonding capacity and provide quick turnaround!
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Contractor Performance and Payment bonds stand behind the contractor’s promise to:
Perform the work according to the contract’s terms and conditions and pay subcontractors, laborers and material suppliers.
We negotiate Bid, Performance & Payment Bonds for contractors from “First Bond” to $100 MM or more.
Contract bonding is a three party contract among the owner, contractor, and surety.
Covers losses caused by dishonest acts of bonded employees, for example theft, embezzlement and forgery. Bonds may also cover funds transfer fraud and social engineering
There is a broad range but generally four types: license and permit; court; public official and miscellaneous.
Required by certain federal, state or municipal governments as a prerequisite to receiving a license or permit to engage in specified business activities. They guarantee that the principal will comply with applicable laws and regulations.
Bonds may be required in court proceedings, such as when a litigant seeks a special right or remedy in advance of a final court decision. The bond guarantees conditions if the opposing party incurs damages as a result of the privilege, or that the privilege was unjustified. Fiduciary bonds guarantee that the individuals or legal entities appointed by the court to oversee the property of others will execute those duties in good faith and are held accountable. An example is a probate bond.
Public Official Bonds are often required of a Notary Public, Sheriff, Deputy Sheriff, Constable, Jailer, County/City/School Treasurer Bonds, Court Clerk, Loan Closing Attorney, and FHA Schedule Bonds, that guarantee proper performance. Professional service bonds guarantee proper performance of a professional, generally licensed.
Common in oil, gas and mining, these bonds guarantee compliance with the operation of oil or gas wells and mines, in particular closure. Common bonds are plugging and abandonment, reclamation, right of way, permit, performance and excise tax.