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Bond is a type of guarantee provided by one to another for specific obligation. Bonds can be in the form of bank guarantee or an insurance policy. Generally, bonds are sought by governing authorities, principals or customers from contractors or vendors or on certain projects to ensure performance of an assigned obligation.

Typical bonds are:

1. Bid bonds
2. Performance bonds
3. Surety bond
4. Advance Mobilisation bonds
5. Payment bonds

It is critical to evaluate the type of bond required, obligations under the bid and the bid value itself to determine the exposure.

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