All About Contractor Surety Bonds from Manav Pietro's blog

This info-graphic titled ‘All About Contractor Surety Bonds’ provides us an overview of issuing contractor sureties. Construction is a high-risk business. One-half of all construction embellishments today will be out of business five years from now, according to the Associated General Contractors of America. An economic downswing, labor exertion, material shortages, equipment problems, and a host of many other difficulties can cause a contractor's business to fail leaving projects at a standstill.

A surety bond furnishes financial security and construction assurance on building and construction projects by reassuring project owners that contractors will execute the work and pay their subcontractors, laborers, and material providers. Contractors and subcontractors are marks for judicial actions; construction surety bonds defend the contracted party if the contract was not completed or fulfilled on time. For example, if you decided to back out of your written agreement, or you did not finish it in time with the nominative terms, your customer won’t be left with the consequences. The surety bond will cover the costs and will finance the new contractor to finish the work that you failed to right-down. For more information, please refer to the info-graphic below.