A Bonded Project is a High-Quality Project
Not only do surety bonds deliver greater economic value than they cost, they ensure projects perform to the highest standards and deliver a range of exceptional benefits, including:
- More rigorous prequalification and review: Surety companies rigorously vet contractors to keep defaults rare. Nearly all (96%) respondents surveyed by EY said prequalification was more likely to occur on bonded projects than on non-bonded projects (61%). During construction,contractors on bonded projects were nearly twice as likely to share multiple financial updates compared to non-bonded projects.
- Higher project prioritization: Should financial difficulties arise, a general contractor is five times more likely to prioritize finishing bonded projects than non-bonded ones, according to construction leaders.
- Faster completion: Nearly five times as many construction leaders report bonded projects are more likely to be completed on time or ahead of schedule. And if a project does default, an unbonded project will take nearly 2x longer to complete than a bonded project.
- Experience and resources: 100% of construction default experts surveyed said sureties have the expertise, tools and resources necessary to complete a project in the most cost and time-effective manner as compared to a project owner who does not have the same expertise and experience as a surety.
- The total value surety bonds deliver exceeds their cost.
- Taxpayers are protected against loss if a contractor defaults.
- Ensures projects are completed.
Small Business Owners, Suppliers, and Workers
- Guarantees contractual obligations are met and workers, subcontractors and suppliers are all paid, even in case of contractor default.
- Reduces odds of default.
- Puts priority on your project.
- Ensures only qualified bidders compete for your project.
- Saves time vetting and prequalifying contractors.
- Protects taxpayer investments.
- Protects small business owners and local workers.
- Promotes robust infrastructure and economic growth for our communities.
- Enhances quality of life by ensuring vital public projects are completed.