Guam Indemnification of Surety on Contractor's Bond by Subcontractor

• Category: Contracts - Indemnification
• State: Multi-State
• Control #: US-13381BG
• Format: Word; Rich Text

Description

To indemnify means to reimburse another for a loss suffered because of a third party's or one's own act or default. It can also refer to a promise to reimburse another for such a loss or to give another security against such a loss. Guam Indemnification of Surety on Contractor's Bond by Subcontractor is a legal provision that pertains to the relationship between subcontractors and surety companies in Guam's construction industry. In this scenario, a surety company acts as a guarantor for the subcontractor's obligations under a contractor's bond. To provide a detailed and informative description, the following keywords are relevant: 1. Guam: Referring to the geographical location where the indemnification provision is in effect, Guam is a U.S. territory situated in the Western Pacific Ocean. 2. Indemnification: It is the act of compensating for any loss, damage, or liability incurred by one party on behalf of another party, in this case, the subcontractor for whom the surety is providing a guarantee. 3. Surety: A surety company is an entity specializing in providing financial backing and assurance, commonly used in the construction industry to guarantee performance and payment bonds. 4. Contractor's Bond: Also known as a construction bond or contract bond, it is a legally binding agreement between an obliged (typically the project owner) and the principal (the contractor). This bond ensures that the contractor will perform their obligations as outlined in the contract. 5. Subcontractor: A subcontractor is a company or individual hired by the general contractor to perform specific tasks or provide services on a construction project. 6. Types of Indemnification: While specific types of indemnification on a contractor's bond by a subcontractor may vary, some common variations include performance bond indemnification, payment bond indemnification, and bid bond indemnification. These types of indemnification pertain to different aspects of the contractor's bond, such as guaranteeing completion of work, payment to suppliers and subcontractors, or securing a bid for a project. To sum it up, Guam Indemnification of Surety on Contractor's Bond by Subcontractor is a legal provision in Guam's construction sector where a surety company acts as a guarantor, providing indemnification to a subcontractor's obligations under a contractor's bond, ensuring completion of work, payment, or securing a bid.

Guam Indemnification of Surety on Contractor's Bond by Subcontractor is a legal provision that pertains to the relationship between subcontractors and surety companies in Guam's construction industry. In this scenario, a surety company acts as a guarantor for the subcontractor's obligations under a contractor's bond. To provide a detailed and informative description, the following keywords are relevant: 1. Guam: Referring to the geographical location where the indemnification provision is in effect, Guam is a U.S. territory situated in the Western Pacific Ocean. 2. Indemnification: It is the act of compensating for any loss, damage, or liability incurred by one party on behalf of another party, in this case, the subcontractor for whom the surety is providing a guarantee. 3. Surety: A surety company is an entity specializing in providing financial backing and assurance, commonly used in the construction industry to guarantee performance and payment bonds. 4. Contractor's Bond: Also known as a construction bond or contract bond, it is a legally binding agreement between an obliged (typically the project owner) and the principal (the contractor). This bond ensures that the contractor will perform their obligations as outlined in the contract. 5. Subcontractor: A subcontractor is a company or individual hired by the general contractor to perform specific tasks or provide services on a construction project. 6. Types of Indemnification: While specific types of indemnification on a contractor's bond by a subcontractor may vary, some common variations include performance bond indemnification, payment bond indemnification, and bid bond indemnification. These types of indemnification pertain to different aspects of the contractor's bond, such as guaranteeing completion of work, payment to suppliers and subcontractors, or securing a bid for a project. To sum it up, Guam Indemnification of Surety on Contractor's Bond by Subcontractor is a legal provision in Guam's construction sector where a surety company acts as a guarantor, providing indemnification to a subcontractor's obligations under a contractor's bond, ensuring completion of work, payment, or securing a bid.