Good Public Policy

Requiring surety bonds for public construction projects is good public policy. Surety bonds are a vital risk management tool that saves taxpayer money, protects taxpayer investments and gets public construction projects done right.
Surety companies ensure general contractors have the capabilities, expertise and financial strength to complete a project. Surety also provides financial security to suppliers, subcontractors and workers – making sure they get paid even if a general contractor defaults.
Surety is synonymous with responsible project management and good stewardship of the public interest.
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A surety bond for a public construction project is a three-party written agreement under which the surety guarantees a government agency that a general contractor will execute work according to contract terms.

Government agencies require contractors purchase surety bonds to ensure project completion and to avoid the risk of default and project delays.

For more in-depth information about surety bonds, visit our Surety 101 page.

Surety Protects Taxpayers, Improves Cost Efficiency

Surety bonds deliver exceptional value for public construction projects: reducing costs, protecting local businesses and improving efficiency.
Here’s are just a few examples of surety’s value:
  • Default protection: Unbonded public construction projects are more likely to default than surety bonded projects – perhaps by 10 times.
  • Lower cost of completion: And when defaults occur, unbonded projects cost 85% more to complete and take nearly twice as long to complete compared to bonded projects.
  • Value outweighs cost: According to economic analysis by EY, the overall value of surety bonds more than covers their costs across a bonded portfolio of construction projects.
  • Improved contractor pricing: Three-in-four developers surveyed by EY reported surety bonding reduces contractor pricing thanks to greater project certainty.

Surety Protects

Learn how surety
bonds protect taxpayers,
save time,
reduce costs and
keep projects on track.

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Surety Industry Advances Critical Federal Policy

SFAA and NASBO hosted their most successful Federal Legislative Fly-in to date, bringing a record number of surety professionals from across the country to Capitol Hill to engage lawmakers on the value of surety bonding.

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The Surety & Fidelity Association of America Foundation Awards Record $90,000 in Scholarships

The SFAA Foundation a 501(c)(3) organization dedicated to expanding the pipeline of qualified applicants within the surety and fidelity industry, has awarded a record $90,000 in scholarships to thirty-one students through its Surety and Fidelity Intern and Scholarship Program.

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News & Events

Surety Industry Advances Critical Federal Policy

SFAA and NASBP led a Legislative Fly-In with members from across the industry to educate Congress on the value of construction surety bonds and advocate for key legislative priorities. Surety professionals held over 135 meetings with policymakers and staff to emphasize the significant savings that surety bonding provides to taxpayers across the country.

The Surety & Fidelity Association of America Foundation Awards Record $90,000 in Scholarships

The Surety & Fidelity Association of America Foundation (SFAA Foundation) has awarded a record $90,000 in scholarships to thirty-one students through its Surety and Fidelity Intern and Scholarship Program.

SFAA’s Alex Gleason Named Among Nation’s Top Lobbyists for 2025

The Surety & Fidelity Association of America (SFAA) has announced that Alex Gleason, Head of Federal Government Affairs, has been named one of the 2025 Top Lobbyists by the National Institute for Lobbying & Ethics (NILE).
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