Assessing and managing risk is crucial to the success of any construction project. Key risks faced by the project owner (the "Owner") range from the construction contractor (the "Contractor") not performing the contract properly or becoming insolvent during the course of the project, and therefore being unable to finish the project.

Internationally, these risks are increasingly addressed through the use of one or more surety bonds. If the Contractor fails to fulfil its obligations, either through poor performance, insolvency or for any other reason, the issuer of the surety bond (the "Surety") will either assume the Contractor's responsibilities or pay compensation to the Owner.

The benefits of surety bonds
Firstly, the risk allocation between the Owner, the Contractor and the Surety helps to control construction project performance risks, and encourage completion of projects on schedule, within budget and according to contract. Secondly, since only Contractors with a good credit rating and adequate risk control measures are able to obtain surety bonds, the use of surety bonds helps in promoting efficiency and good management in the construction industry. Furthermore, by using market measures to strengthen the administration of the construction industry, surety bonds help to mitigate the burden on government for the administration of project construction.

Typical problems we can help you with
"I need work but I can't get bonds."

"I don't have all the right paperwork to get an SBA bond."

"I haven't been in business very long."

"I have a weak financial statement."

"I've paid my dues on the small jobs. I'm ready to get into larger projects."

"My company is 8(a). I'm tired of being hired by big companies to help them get great jobs and give me as small a piece of the action as they can."

"There are good jobs out there, but you need bonds to get them."

"Most of the good work is for the government."

"Private-sector work is slow."