Surety
Bonding

Ferrari & Associates understands the challenges contractors face while trying to grow their business. Your ability to take on more complex projects—and more projects in general—can ensure your company’s financial and reputational success. A surety bond, more importantly, securing the right surety bonds for your project, is critical. That’s where these financial instruments come into play.

A surety bond provides a guarantee between three parties: the contractor (principal), the project owner (obligee), and the surety company. These bonds protect project owners from financial losses by ensuring the contractor meets their contractual obligations.

Contract surety bonds provide financial assurance that you’ll fulfill your contractual obligations on construction or service projects. These bonds come in various forms, including bid, performance, and labour and materials payment bonds. For example, if you’re awarded a large infrastructure project, a performance bond ensures the project owner that you’ll complete the work as agreed. If you face unexpected challenges, the bond ensures the owner won’t bear the financial burden. Contract surety bonds demonstrate your professionalism, mitigate risks for project owners, and help you qualify for larger, more complex projects. For contractors, bonding is not just a requirement—it’s a strategic tool for building trust and credibility. Bid bonds reassure project owners that your bid is credible and that you’re prepared to enter into a contract. Once a project begins, performance bonds guarantee that the work will be completed to the agreed-upon standards, while labour and materials payment bonds ensure that subcontractors, suppliers, and workers will be paid.