If you are doing business in Georgia, chances are you will eventually have to get some type of surety bond. From private businesses to federal projects, surety bonds are often required to take on certain projects. In Federal or State projects, the bonds are put into place to protect the State’s and the public’s interests.
A surety bond is an agreement between three parties: The principal (this would be you) who pays for the bond, the guarantor (the surety company) who issues the bond, and the obligee (the other party of the original contract) who will be protected if you do not fulfill your terms of the contract.
Why do you need a surety bond?
A surety bond is a requirement for most projects. The bond protects the obligee against any financial loss if the principal does not complete the project or does not fulfill their obligations according to contract for any reason.
How much will a surety bond cost?
The cost of a surety bond can vary, depending on the type of bond you are buying. Some rates are fixed by the state, while some are fixed nationwide. A good credit history is an important factor that can determine both the cost and your approval of the bond. You can still get approved with poor credit history; however, this may affect your bond premium.
