The United States construction market and its various stakeholders have long been aware of the benefits of surety bonds as performance and payment security for the obligee/owner, the general contractor/oblige, and subcontractor and supplier claimants in the event that the contractor breaches the construction contract, or upon the contractor's insolvency. In the past few years, however, we have seen an increase in an owner's demand for parent guarantees either as a supplement to bonds (belt and suspenders, if you will) or as a substitute of bonds or letters of credit.
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