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You are here: Home » Benefits of Surety

Surety Bonds: Vital to Building Strong Communities

Public construction projects improve communities. Highways, schools, and other priorities are vital to strong economic health and enhanced quality of life. 

Surety bonds put high-quality contractors on the job and make sure local small businesses, suppliers and workers all get paid for their services. Because bonded projects are more likely to be completed on time – or ahead of schedule – communities can enjoy the benefits of public infrastructure with the confidence that taxpayer dollars were invested responsibly and efficiently.

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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.

Taxpayers

  • 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.

Project Owners

  • Reduces odds of default.
  • Puts priority on your project.
  • Ensures only qualified bidders compete for your project.
  • Saves time vetting and prequalifying contractors.

Policymakers

  • 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.
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News & Events

EY Report: Surety Bonding Provides Strong Economic Value and Strengthens Performance for Public and Private Construction Projects

November 17, 2022
A new study released today, The Economic Value of Surety Bonds, finds public and private construction projects protected by surety have lower rates of contractor default, lower cost of completion in the case of default, and are finished faster than non-bonded projects.
https://surety.org/wp-content/uploads/2021/07/SFAA-Logo-FullColor-RGB.png 0 0 SFAA https://surety.org/wp-content/uploads/2021/07/SFAA-Logo-FullColor-RGB.png SFAA2022-11-17 13:23:532022-11-28 17:19:46EY Report: Surety Bonding Provides Strong Economic Value and Strengthens Performance for Public and Private Construction Projects

The Surety & Fidelity Association of America Foundation Awards 15 Students With $5,000 Scholarship

October 19, 2022
The Surety & Fidelity Association of America Foundation (SFAA Foundation) announced today the 15 students selected as recipients of a $5,000 scholarship as part of the Surety and Fidelity Intern and Scholarship Program for 2022.
https://surety.org/wp-content/uploads/2021/07/SFAA-Logo-FullColor-RGB.png 0 0 Brian Muhlbach https://surety.org/wp-content/uploads/2021/07/SFAA-Logo-FullColor-RGB.png Brian Muhlbach2022-10-19 13:39:442022-11-28 17:17:59The Surety & Fidelity Association of America Foundation Awards 15 Students With $5,000 Scholarship

SFAA Receives Prestigious 2022 ASAE Silver ‘Power of Associations’ Award for Federal Advocacy Campaign

October 14, 2022
The Surety & Fidelity Association of America (SFAA), a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry, won the prestigious ASAE Silver Power of Associations Award for their TIFIA-Bonding Advocacy Campaign.
https://surety.org/wp-content/uploads/2021/07/SFAA-Logo-FullColor-RGB.png 0 0 Brian Muhlbach https://surety.org/wp-content/uploads/2021/07/SFAA-Logo-FullColor-RGB.png Brian Muhlbach2022-10-14 13:30:292022-11-28 17:18:26SFAA Receives Prestigious 2022 ASAE Silver ‘Power of Associations’ Award for Federal Advocacy Campaign
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