"Bonding is surety, the state of being sure, certain and secure." (Source: Bonding, Saskatchewan Property Management Corporation, 1988) Surety bonding is essentially an agreement between three parties whereby one party guarantees that another party will perform the work that is stated in contract to the best of his/her ability. It is a guarantee that the owner of a job will receive the quality and completion of work that he/she anticipates.
Depending on what type of business you are in, you may be required to obtain bonding before you can start work. There are many different kinds of bonds, the three most common types of bonds are:
1. Contract Bonds (Bid Bonds)
2. Fidelity Bonds
3. Miscellaneous Bonds
Source: Canada-Ontario Business Service Centre