What is a Construction Surety Bond?

A surety bond is an agreement under which one party, the Surety (Insurance Company), guarantees to another (Owner/Obligee), that a third party (Principal/Contractor), will perform a contract in accordance with the contract documents.

There are three types of contract surety bonds:

• Bid Bond - Provides financial assurance to the Owner/Obligee that the Principal/Contractor intends to enter into the contract at the price bid and provide the Performance & Payment Bonds.
• Performance Bond - Provides protection to the Owner/Obligee from financial loss should the Principal/Contractor fail to perform the contract.
• Payment Bond - Guarantees that the Principal/Contract will pay certain subcontractor, labor and material bills in connection with the project.

How to obtain Surety Bonds

Before issuing a bond, the Surety Company must feel comfortable that a contractor is of good character, has the experience and financial resources to perform the job according to the contract documents and specifications.

Our professional and friendly staff will guide you through the bonding process and assist you in establishing a bonding relationship with a Surety Company.