Surety bond
A surety bond guarantees the performance or financial obligations of others, and they are issued by a licensed surety company. In the construction industry, for example, surety bonds are provided to the construction project owner (the obligee) by the surety company to assure that the contracted work will be completed by the contractor (the principal), and that protection will be provided if it is not. Surety bonds used in construction include bid, performance, and payment bonds as well as supply and maintenance bonds. The NZECO may cover any surety bond that falls within the criteria for the US Surety Bond Guarantee product.