What form of wording is typically used in a bond?

There are three commonly used types of bond. Conditional requires that damages need to be established and ascertained by an appointed representative before any bond claim is paid. Adjudication is where an independent adjudicator is required to assess and determine the amount of the damages incurred by the Beneficiary. On-demand agrees that payment will be made immediately without proof of damages being established.

Each type of bond has pros and cons for each party involved. A specialist Surety broker, Kerry London will always explain these to their clients to ensure any risks are considered and known.