Construction is an inherently risky undertaking, as each project represents a confluence of unique elements. Problems of all sorts can arise, including bankruptcy of the contractor or a key specialty trade contractor. Sureties mitigate such risks by ensuring a pool of qualified bidders on bonded construction contracts. Nonetheless, defaults do occur, and sureties, which offer performance and payment guarantees, step up to address these defaults, proving their significant value.
Stories of how sureties “saved the day” are legion in the industry, but few outside the industry are aware of such stories. Following are a representative assortment of recent situations where sureties provided the resources to rectify problems and to pay sums due, so projects progressed and businesses were preserved.