Good Public Policy
Learn the basics of surety bonds
A surety bond for a public construction project is a three-party written agreement under which the surety guarantees a government agency that a general contractor will execute work according to contract terms.
Government agencies require contractors purchase surety bonds to ensure project completion and to avoid the risk of default and project delays.
For more in-depth information about surety bonds, visit our Surety 101 page.
Surety Protects Taxpayers, Improves Cost Efficiency
- Default protection: Unbonded public construction projects are more likely to default than surety bonded projects – perhaps by 10 times.
- Lower cost of completion: And when defaults occur, unbonded projects cost 85% more to complete and take nearly twice as long to complete compared to bonded projects.
- Value outweighs cost: According to economic analysis by EY, the overall value of surety bonds more than covers their costs across a bonded portfolio of construction projects.
- Improved contractor pricing: Three-in-four developers surveyed by EY reported surety bonding reduces contractor pricing thanks to greater project certainty.
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.
The Surety & Fidelity Association of America Foundation Awards 19 Students With $47,500 in Scholarships
SFAA Foundation announces 19 students selected as recipients of a $2,500 scholarship as part of the Surety and Fidelity Intern and Scholarship Program for 2023.