Surety Bonds: Vital to Building Strong Communities
Public construction projects improve communities. Highways, schools, and other priorities are vital to strong economic health and enhanced quality of life.
Surety bonds put high-quality contractors on the job and make sure local small businesses, suppliers and workers all get paid for their services. Because bonded projects are more likely to be completed on time – or ahead of schedule – communities can enjoy the benefits of public infrastructure with the confidence that taxpayer dollars were invested responsibly and efficiently.
A Bonded Project is a High-Quality Project
- More rigorous prequalification and review: Surety companies rigorously vet contractors to keep defaults rare. Nearly all (96%) respondents surveyed by EY said prequalification was more likely to occur on bonded projects than on non-bonded projects (61%). During construction,contractors on bonded projects were nearly twice as likely to share multiple financial updates compared to non-bonded projects.
- Higher project prioritization: Should financial difficulties arise, a general contractor is five times more likely to prioritize finishing bonded projects than non-bonded ones, according to construction leaders.
- Faster completion: Nearly five times as many construction leaders report bonded projects are more likely to be completed on time or ahead of schedule. And if a project does default, an unbonded project will take nearly 2x longer to complete than a bonded project.
- Experience and resources: 100% of construction default experts surveyed said sureties have the expertise, tools and resources necessary to complete a project in the most cost and time-effective manner as compared to a project owner who does not have the same expertise and experience as a surety.
Taxpayers
- The total value surety bonds deliver exceeds their cost.
- Taxpayers are protected against loss if a contractor defaults.
- Ensures projects are completed.
Small Business Owners, Suppliers, and Workers
- Guarantees contractual obligations are met and workers, subcontractors and suppliers are all paid, even in case of contractor default.
Project Owners
- Reduces odds of default.
- Puts priority on your project.
- Ensures only qualified bidders compete for your project.
- Saves time vetting and prequalifying contractors.
Policymakers
- Protects taxpayer investments.
- Protects small business owners and local workers.
- Promotes robust infrastructure and economic growth for our communities.
- Enhances quality of life by ensuring vital public projects are completed.
Surety Protects
Learn how surety
bonds protect taxpayers,
save time,
reduce costs and
keep projects on track.
Surety Industry Unites on Capitol Hill to Advocate for Key Legislative Priorities
See Senators Capito, Carper and Van Hollen speak on the Senate floor about the importance of surety.
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