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What Is a Surety Bond: Definition and How It Works

By Kristi WaterworthUpdated Nov 19, 2024 at 12:57 PM

Key Points

  • Surety bonds ensure contractual terms are met, reducing risks in construction and other projects.
  • Contract and commercial surety bonds protect various stakeholders in business dealings.
  • For investors, requiring surety bonds in projects can safeguard returns and minimize overruns.

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