Bond is a form of guarantee given by one party called the Surety (Insurer) that he should be held liable by another party called Employer or Principal in the event of yet another party’s called the Contractor failure to fulfill or abide by the terms and conditions of the said contract or agreement.

There are basically five types of bonds namely:

– Performance Bond
– Advance Payment Bond
– Bid/Tender Bond
– Customs Bond
– Credit Bond