Table of Contents

• What is a Surety Bond?
• Surety Company Underwriter
• Prequalification Process
• Financial Statements
• Commitment
• Maintaining the Surety Relationship
• Conclusion

Federal, state, and local governments require surety bonds in order to manage risk on construction projects and protect taxpayer dollars. However, surety bonds are not limited to public construction. Many private project owners stipulate bonding requirements on their projects and prime contractors may require subcontractors to obtain bonds. In today's competitive construction environment, a contractor's ability to obtain surety bonds has a significant effect on that contractor's ability to acquire work.