Any project that is funded with Federal money and is over $250,000 in size will require performance and payment bonds. President Biden has just proposed a 2 trillion dollar investment in infrastructure. The overwhelming majority of this work will be bonded; meaning the contractor(s) bidding on this work will need to secure bid, performance and payment bonds.
There will not be a single 2 trillion dollar surety bond. Each contractor bidding on the work will have to qualify and secure a surety bond on a per project basis. Also, with so much work coming out, many of the general contractors will require subcontractor bonds from its subs.
The role of the surety is pre-qualification of contractors. Surety 101 is the “3 C’s of Surety” Character, Capacity and Capital.
For contractors new tot he public arena, the SBA surety bond guarantee program may be an attractive path. The SBA guarantees surety bonds for certain surety companies, which allows the companies to offer surety bonds to small businesses that might not meet the criteria for other sureties.
Surety1.com can assist contractors with all their bond needs. Surety1.com is a service of AsssuredPartners one of the largest and fastest growing insurance agencies in the country. Since 2003, Surety1 has been helping contractors obtain the surety credit they need. Surety1 is licensed in all fifty states and maintains an A+ rating from the Better Business Bureau.