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.
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.