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Small & Emerging Contractors


Contractors and Subcontractors

Bonding capacity is evidence of your competence, capability, and financial strength.  Surety bonds can open doors to new construction markets.

The materials below are recommended for Contractors and Subcontractors.

Brochures  | PowerPoints | Links


Surety Bonds - Common Misconceptions

Learn about the 11 most common misconceptions about Surety Bonds.


Value of Surety Bonds

Government entities in the United States have understood the importance of surety bonds and have required bonding for over a century to provide performance and payment assurance for the nation's infrastructure projects. Although procurement methods have evolved—including the increased use of public-private partnerships (P3s) in the U.S.—construction risks remain the same, making surety bonds just as relevant and important today.

Surety Bonds at Work

Avoid performance and financial issues.  Learn how Surety Bonds enable projects to be completed.


Importance of Surety Bonds in Construction

Learn about the importance of surety bonds in construction.  This brochure covers historical perspective, risky business, types of bonds, financial security and construction assurance, prequalification of the contractor, contractor failure, bond rates and benefits of bonds.

Surety Companies:  What They Are & How to Find Out About Them

This updated brochure describes some resources that offer information on surety companies including surety bond producers, state insurance departments, U.S. Department of the Treasury and A.M. Best Company.

Helping Contractors Grow:  Surety Bonding for New & Emerging Contractors

Learn about fostering a relationship with a surety company, the prequalification process, programs for new & emerging contractors, bonding support programs, bond guarantee programs and mentor/training programs.


How to Obtain Surety Bonds

An introduction to contract surety bonding for contractors. 

SBA's Surety Bond Guarantee Program

The U.S. Small Business Administration’s (SBA) Surety Bond Guarantee Program, with cooperation from the surety industry, assists small construction companies in obtaining required bonds on federal, state, local, and commercial construction projects and on service and supply contracts and subcontracts. 

Surety Bonds vs. Bank Letters of Credit

This brochure comparing surety bonds with letters of credit makes it crystal clear why surety is the preferred method of guaranteeing an obligation or project. No charge for Members or Non-Members for up to 25 copies of this brochure.

Surety Bonds vs. Subcontractor Default Insurance

A surety bond is a comprehensive risk transfer mechanism that provides the prequalification of subcontractors; shifts the entire risk of the principal’s default from the obligee to the surety; requires the surety to manage default situations; and provides 100% payment protection to certain subcontractors and suppliers. SDI is often described and marketed as an alternative to traditional performance and payment bonds, but it is merely a traditional insurance policy and provides no payment protection for subcontractors, suppliers, and laborers.

Why Do Contractors Fail

Construction is a complicated business that faces ever-changing conditions, and those who are not prepared or capable of meeting these demands may ultimately fail.  Surety bonds provide prevention and protection.


AGC Surety Claims Guide

The contract surety bond claims process, developed by the Associated General Contractors of America (AGC).

Economics of Default

The Economics of a Default on a $1 million NON-bonded Project. Assumes two subcontractors and two material supply companies.



Building a Solid Surety Relationship

Contract Surety Bonds: Understanding Today's Market


Informed Decisions: Surety Bonds or Bank Letters of Credit

Obtaining Surety Credit: An Introduction to the Surety Process for Contractors

Reducing Subcontractor Financial Risk

Surety Bonds 101: The Basics of Bonding

Why Do Contractors Fail?


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