STUDY: THE FUNCTION OF A SETTLEMENT BOND IN PROTECTING A BUILDING PROJECT



Defaulting On An Efficiency Bond Can Have Significant Monetary Consequences.This Can Result In A Range Of Financial Effects, Consisting Of:

Author-When a guaranty concerns an efficiency bond, it guarantees that the principal (the party that purchases the bond) will fulfill their responsibilities under the bond's terms. If the primary fails to fulfill these responsibilities and defaults on the bond, the guaranty is responsible for covering any kind of losses or problems that result.1. L

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