In a contract bond arrangement, who is considered the obligee?

In a contract bond arrangement, the obligee is typically the owner of the project or property. The obligee is the party that requires the bond and is protected by it. In this context, the contractor is often the principal, who is obliged to perform the work stipulated in the contract, while the surety company acts as a guarantor to ensure that the contractor fulfills their obligations.

The owner, as the obligee, is entitled to seek compensation from the surety if the contractor fails to meet the terms of the contract or defaults on their obligations. This is a crucial aspect of contract bonds, as they serve to protect the interests of the project owner in ensuring that the work will be completed as agreed upon.

Understanding the roles within a contract bond arrangement is essential, as it clarifies who holds the responsibility and who has the rights to claim against the bond if necessary. The contractor and the architect-engineer do not hold the status of obligee because they do not require the protection of the bond in the same manner as the owner does.