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Why do owners require a Surety Bond?

Having a surety bond benefits every party involved in the transaction.  The oblige, who is the owner of the project is given reassurance that contractor companies with available surety credit are financially sound.  This benefits the contractor because the surety helps the contractor to grow slowly while building up their credibility in the industry.  Also, the lender for the project can require a surety bond because it is protection for their investment.    Since contractors continue to face hardships with lenders as well as economic instability, it is highly recommended for project owners and financial institutions to rely on the surety’s careful con­tractor qualification process and the project completion assurance of surety bonding.

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