11.1 Participating Types Copy

There are three parties to a surety agreement:

Principal: Known as the obligor, the principal is responsible for the party who has agreed to perform a service, such as a contractor.

Obligee: The oblige is the insured, the party who benefits from the bond. In construction, the obligee is the project owner.

Surety This is the guarantor or insurance company that guarantees that the obligatory will fulfill all undertakings, covenants, terms, conditions, and agreements of a contract. In construction, the surety guarantees that the obligatory will complete the project and pay for all labor and materials.