The 3 Parties to a Bond
1. Obligee [Revenue, Local Authority, EPA]
• Surety obligated to the Obligee
• The obligation is laid out in the terms of the bond
2. Surety [Bond Provider]
• Surety provides Credit for Principal or goes guarantor for them
• Principal pays surety for this service
• Counter-Indemnity Agreement (This indemnifies the Surety for everything)
3. Principal [Contractor]
• The Principal contracts to fulfill an obligation to the Obligee
• A provision of the contract requires the Principal to provide a bond
• The mirror requirement is for the Obligee to pay the Principal for works done