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| Originally Posted by Surety Queen Good question. The purpose of a bond is to protect public money - as in taxpayers. Not for their private work - but for public work. The bond is to make sure that if a contractor starts a job for a municipality and decides not to finish, that the Surety will come in to complete the job. It is suggested that a homeowner have a written contract with the contractor and that they check references thoroughly. |
The purpose of a bond is protect the Employer, whoever that may be. Bonds can and are issued in favour of both Public and Private employers. Specifically the Miller Act and the principle of 100% Performance and Payment Bonds was introduced to protect public interest but that has never meant that Suretys cannot issue bonds to other parties.