This NASBP publication addresses questions frequently asked by public and private owners about surety bonds and the surety bonding process. It is intended to try to eliminate the misunderstandings and misconceptions that owners often have about the surety product and the bonding process.

This NASBP publication addresses questions frequently asked by public and private owners about surety bonds and the surety bonding process. It is intended to try to eliminate the misunderstandings and misconceptions that owners often have about the surety product and the bonding process.

This short video by NASBP will explain and walk you through an example of what a surety bond is and what someone new to the bonding process might need to know, in just seven minutes. Consider sharing with others who might be interested in learning more about the bonding process.

A surety bond, as the name suggests, means a sure thing - at least when it comes to the financial security of construction projects. Simply put, surety bonds are similar to loans from a bank, and construction contractors who qualify for them show owners their ability to do the job right. Bonds bring successful outcomes. Construction is an expensive and risky business with a high rate of default on project completion, according to experts at the National Association of Surety Bond Producers (NASBP), the Bethesda, Md.-based association for surety bond producers.

This is a two-page, easy-to-understand document that discusses the differences between subcontractor bonds and subcontractor default insurance. The first page provides an overall explanation, and the second page contains a comparison chart.