Construction bonds form the foundation of trust between contractors and project owners. They guarantee that projects will be completed as agreed, payments will reach every subcontractor and supplier, and artistry meets contract standards from groundbreaking to final acceptance.
We support contractors at every level, from first-time bidders pursuing their first public project to established builders managing large-scale programs across multiple states. We are an NASBP-member agency licensed in Arizona, California, Georgia, Louisiana, Michigan, New Mexico, New York, Pennsylvania, Texas, Utah, and Virginia, with access to A-rated carrier partners, including Liberty Mutual Surety and CNA Surety.
Construction bonds are three-party agreements between a Contractor (the principal), a project owner (the Obligee), and a Surety company. If the contractor defaults, the surety ensures completion or compensates the owner, protecting everyone with a stake in the project.
Most public construction requires bonding by law. Federal projects over $150,000 must comply with the Miller Act. State and local public projects fall under each state’s Little Miller Act. Private owners and lenders increasingly mirror these requirements on commercial work.
Guarantee that a qualified surety backs your bid and that you’ll sign the contract and provide performance/payment bonds if awarded.
Protect the project owner by ensuring the job is completed in accordance with the contract terms.
Ensure subcontractors and suppliers are paid for their work and materials, reducing lien exposure for owners.
Provide coverage after completion for workmanship or material defects, typically lasting one to two years.
Required by municipalities to guarantee improvements like streets, sidewalks, and utilities in new developments.
Each bond type has a specific purpose, but all serve the same goal: project assurance.
Submitted with your proposal. Guarantees you’ll sign the contract and provide performance and payment bonds if awarded. Required on virtually all public projects, including TxDOT, federal agencies, school districts, and municipal work.
Guarantees the contractor will complete the project per contract terms. If the contractor defaults, the surety ensures completion or compensates the owner. Required on federal projects over $150,000 and most public work.
Guarantees subcontractors, suppliers, and laborers will be paid. Issued alongside performance bonds as a P&P package. Eliminates lien exposure for owners and protects the full supply chain.
Covers defects in artistry or materials after project completion. usually 10%–20% of contract value, covering a one to two-year warranty period.
Required by municipalities before developers can begin public infrastructure work within private developments.
Guarantee compliance with federal and state environmental regulations on remediation and industrial projects.
