Which of the following is not part of a three-party bonding agreement?

In a standard three-party bonding agreement, the structure consists of three primary parties: the contractor, the owner, and the surety company. The contractor is responsible for performing the work under the contract, the owner is the party that hires the contractor for the project, and the surety company provides the financial backing or guarantee that the contractor will fulfill their obligations.

The surety company plays a crucial role in this arrangement by offering a bond that assures the owner that the contractor will complete the project as agreed. If the contractor defaults, the surety company steps in to either complete the work or compensate the owner for any losses incurred.

The inclusion of the subcontractor is not part of this three-party agreement because subcontractors work under the contractor, not directly with the owner or the surety. Their relationship is more indirect in the context of bonding agreements, as the contractor is responsible for any obligations and liabilities related to work performed by subcontractors.

Understanding the distinct roles of these parties is essential for grasping how bonding agreements function within the construction industry and the protections they afford to owners against contractor defaults.