IN DEPTH STUDY OF

Let's take a look at an example. Let's assume that the city of Glendale is wanting to have a road paved to provide a throughway through the town. So, the town goes out and gets bids from a variety of different companies to pave the road. They finally chose a company to pave the road, but then requires that company to get a performance bond. The company that needs the bond is the obligor and the city is the obligee... The city wants the contractor to get a performance bond because they do not want to have the massive delay if the contractor is unable to finish the job. So, let's assume that the contractor walks off the job later. If they do that, the city will then look to the Surety company to pay damages or find another contractor to finish the job. The surety will probably get another contractor as that is usually the cheapest option. Then, the surety will look to the original contractor to pay any damages that were incurred by getting the second contractor to finish the job... A..