Surety Bonds in Atlanta, Georgia, Alabama
What are Contract Surety Bonds?
Surety bonds that are written for construction projects are called contract surety bonds.
A project owner (the obligee) seeks a contractor (the principal) to fulfill a contract.
The contractor, through a surety bond producer, obtains a surety bond from a surety company.
If the contractor defaults, the surety company is obligated to find another contractor to complete the contract or compensate the project owner for the financial loss incurred.
When do I need a contract surety bond?
- Any federal construction contract valued at $150,000 or more requires surety bonds when a contractor bids or as a condition of contract award.
- Most state and municipal governments have a similar requirement.
- Many private owners also elect to require contract surety bonds.
If you are a contractor, you will want to find the perfect surety bond, and arming yourself with knowledge is the first place to start.
Our agents will take the time to explain coverage options and walk you through types and choices.