From large global general contractors to local trade contractors, construction bonds serve as protection for owners and general contractors from defaults. Provide the assurances necessary for construction projects, contracts and their subsequent obligations, both large and small. Equipped with industry expertise, the facilitation of sureties' relationships and decades of knowledge, Gallagher offers contract surety bonds tailored for your needs.
We help advise you on key issues including indemnity, rates, capacity and business continuity planning. Through our underwriting and brokerage experience, we offer surety bonds for contractors that provide a guarantee for the performance and payment obligations of your next construction project.
Contract surety bonds customized for your construction business
Gallagher is helping bridge the gap between contractors and project owners while minimizing the risks for all parties. Through our contract surety bond expertise, we can help meet any and all of your needs. Our construction surety expertise includes:
- Strong surety market leverage and reach as we have relationships with all major surety markets.
- A global network that helps us in assisting clients with due diligence on subcontractors, owners and general local knowledge.
- Comprehensive knowledge to assist clients on maximizing their surety support.
- Extensive expertise in co-sureties and joint ventures.
- Industry involvement and advocacy dedicated to actively participating in key construction and surety industry associations, including National Association of Surety Bond Producers (NASBP), Associated General Contractors of America and local construction and surety associations.
- Access to the SurePath network with e-bond integration to process and manage surety bonds.
Types of construction bonds
We work alongside every type of contractor from home builders to general contractors within your community -- to highway and civil contractors to international general contractors. From private construction development to public works projects, our expertise in contract surety bonds keeps all parties protected. Examples of contract surety bonds are:
- Bid bonds – Guaranteed if the principal (contractor) is a low bidder and awarded the job, he/she/they will enter into a contract and provide the necessary performance and payment bonds.
- Performance bonds – The surety entity is obligated to the obligee to ensure performance of the contract in accordance with the contract terms and specifications.
- Payment bonds – Also known as labor and material bonds, these guarantee that the payments due to qualified claimants, in connection with work performed under the contract, will be paid as committed.
- Maintenance bonds – Also known as a warranty bond, this type of surety bond purchased by a contractor that protects the owner of a completed construction project for a specified time period against defects and faults in materials, workmanship, and design that could arise later if the project was done incorrectly.
Navigating the complexities of projects with contract surety
Construction bonds (also known as contract surety bonds) are essential for contractors to help ensure the completion of your construction project. While surety bonds are written by insurance companies, they are not considered traditional insurance. Surety bonds are three-party agreements in which the surety guarantees the performance of the principal to the obligee. The surety does not assume the primary obligation, as any losses are to be repaid by the bonded contractor. While the two may seem similar, below is a list of a few differences between construction bonds and insurance policies: