Most contractors working on public projects, and even some private projects, are familiar with surety bonds. This contract is between the obligee, or the recipient of the obligation; the principal party, who will pay for the contracted obligation; and the surety. It is a promise by the surety to pay the obligee if the principal fails to meet their obligation.
But in the construction industry, there are other bonds that may be required in a contract. Below are three of the less common bonds and how they work.