What is a Surety?
A surety is a three-party relationship – Surety guarantees the contractual obligation between the Contractor and Owner.
Surety
A corporate insurance company licensed with the states to provide surety. Surety companies as rated by AM Best on a scale of A++, A+, A, A- the quality of the balance sheet and a number of 1-15 the strength of the balance sheet. The majority of owners will require an A- or better surety company. The Federal Government provides a Federal Treasury List for sureties, identifying the single largest bond the Federal Government will accept a bond from the surety.
Contractor
A qualified contractor able to complete the owners contract. The contractor has completed the surety pre-qualification and secured a surety support for the size and type of project.
Owner
The owner will look to the performance bond to secure performance of the contract with the contractor. The payment bond will provides a lien free project, securing payment of all subs, suppliers, and labor performed.
Broker
Babcock Solutions works with clients to develop, implement and maintain their surety business plans.