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BONDS

Another phenomenon coming from the U.S. absolutely unknown for instance in Europe. But, here in the Philippines we have an unknown number of Bonds.

But what are Bonds? Who needs them? - A Bond is a contract of Surityship. It's an agreement whereby called Surity guarantees the performance by another party, called the principal or obligor of an obligation of undertaking in favor of a third party called the obligee.

A Bond provides assurance to the project owner that a contractor is capable of completing a project according to the contract specifications.

As with an insurance where are always two parties, the Insurer and the insured, with a Bond there are three parties: The Principal, the Obligee and the Guarantor (surety).


Type of Bonds
1. Surity Bonds Agreement by which the Surity (bonding company) promises to answer financially for the debt, default or conduct of the principal.

2. Fidelity Bonds Agreement by which the bonding company promises to reimburse the employer (obligee)for any loss of money or property due to the dishonest act of the employee (principal).


Types of Surity Bonds
1. Financial Guarantee
2. Performance Bond
3. Judicial Bonds
4. License or Permit Bonds
5. Custom Bonds


Surity Bonds (Construction)
1. Bidders Bond
2. Performance Bond
3. Downpayment Bond
4. Payment Bond
5. Warentee Bond


Requirement for Bonds in General
1. copy of the contract
2. copy of articles of incorporation (if applicant is a corporation)
3. copy of board resolution
4. copy of certification of registration
5. residence certificate (if individual)
6. bond application form accomplished by the applicant
7. co-signor/s information sheet duly accomplished by the co-signor

As mentioned before, the number of Bonds are enormous. Too many to mention here in this article. Just let us know where is your interest and we will provide you the necessary documentation.


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