Contractors can expand their businesses by obtaining payment and performance bonds that are required for most public projects and some private projects. By qualifying for a surety bond, contractors, including small, emerging and disadvantaged (minority, women and veteran-owned businesses), can bid on more contracts and gain a competitive advantage in the market.
By obtaining a surety bond, contractors gain access to the unique perspectives and input of professionals in the industry. Through their relationships with a surety bond agent and surety company, contractors have additional resources available to them, such as practical business operations and financial advice, assistance with negotiating contractual terms and referrals to other professional services—all essential to building a successful business.
The surety industry has a longstanding commitment to the growth of small, emerging and disadvantaged contractors. Initiatives, such as the Contractor Bonding Education and Mentoring Program, exist to help contractors learn how to obtain a construction bond to grow their businesses.
