• About SFAA
  • News & Events
  • Member Login
  • Registration Form
  • 0Shopping Cart
SFAA
  • Surety & Fidelity
  • Resources & Programs
  • Advocacy & Policy
  • Surety Protects
  • Search
  • Menu Menu
You are here: Home » Surety Basics

Good Public Policy

Requiring surety bonds for public construction projects is good public policy. Surety bonds are a vital risk management tool that saves taxpayer money, protects taxpayer investments and gets public construction projects done right.

Surety companies ensure general contractors have the capabilities, expertise and financial strength to complete a project. Surety also provides financial security to suppliers, subcontractors and workers – making sure they get paid even if a general contractor defaults.

Surety is synonymous with responsible project management and good stewardship of the public interest.

Learn More
  • Surety Basics
  • Benefits of Surety
  • Key Resources

Learn the basics of surety bonds

A surety bond for a public construction project is a three-party written agreement under which the surety guarantees a government agency that a general contractor will execute work according to contract terms.

Government agencies require contractors purchase surety bonds to ensure project completion and to avoid the risk of default and project delays.

For more in-depth information about surety bonds, visit our Surety 101 page.

Surety Protects Taxpayers, Improves Cost Efficiency

Surety bonds deliver exceptional value for public construction projects: reducing costs, protecting local businesses and improving efficiency.

Here’s are just a few examples of surety’s value:

  • Default protection: Unbonded public construction projects are more likely to default than surety bonded projects – perhaps by 10 times.
  • Lower cost of completion: And when defaults occur, unbonded projects cost 85% more to complete and take nearly twice as long to complete compared to bonded projects.
  • Value outweighs cost: According to economic analysis by EY, the overall value of surety bonds more than covers their costs across a bonded portfolio of construction projects.
  • Improved contractor pricing: Three-in-four developers surveyed by EY reported surety bonding reduces contractor pricing thanks to greater project certainty.
Link to: Surety Protects

Surety Protects

Learn how surety
bonds protect taxpayers,
save time,
reduce costs and
keep projects on track.

Learn More
Follow a manual added link

U.S. Senate Unanimously Supports Surety Bonds and the Protections and Economic Value They Provide to Our Nation’s Critical Infrastructure Development

See Senators Capito, Carper and Van Hollen speak on the Senate floor about the importance of surety.

Learn More
Follow a manual added link

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

SFAA Foundation announces 15 students selected as recipients of a $5,000 scholarship as part of the Surety and Fidelity Intern and Scholarship Program for 2022.

Learn More

News & Events

The Surety & Fidelity Association of America Foundation Awards 19 Students With $47,500 in Scholarships

October 18, 2023
The Surety & Fidelity Association of America Foundation (SFAA Foundation) announced today the 19 students selected as recipients of a $2,500 scholarship as part of the Surety and Fidelity Intern and Scholarship Program for 2023.
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 Muhlbach2023-10-18 12:41:532023-10-23 20:09:39The Surety & Fidelity Association of America Foundation Awards 19 Students With $47,500 in Scholarships

SFAA, NASBP and a Coalition of Partners Strongly Support Bill Providing Essential Protections on WIFIA Financed Projects

September 27, 2023
The Surety & Fidelity Association of America (SFAA), National Association of Surety Bond Producers (NASBP), and a coalition of industry partners commend Senator Mark Kelly (D-AZ) and Senator Kevin Cramer (R-ND) for the introduction of S.2928
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 Muhlbach2023-09-27 14:43:372023-09-27 14:44:41SFAA, NASBP and a Coalition of Partners Strongly Support Bill Providing Essential Protections on WIFIA Financed Projects

SFAA Annual Meeting Highlights 2022 Accomplishments and Initiatives; Membership Elects Board

June 7, 2023
The Surety & Fidelity Association of America (SFAA), a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry, held its annual meeting last week in Washington, D.C. with more than 185 members and guests attending.
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 Muhlbach2023-06-07 16:11:272023-06-07 16:30:13SFAA Annual Meeting Highlights 2022 Accomplishments and Initiatives; Membership Elects Board
All News
 
  • Surety &
    Fidelity
  • Resources &
    Programs
  • Advocacy &
    Policy
  • About
    SFAA
  • News &
    Events
  • Surety
    Protects

1140 19th Street, NW, Suite 500 • Washington, DC 20036-6617

Scroll to top