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Is using a surety bond common practice?

I'm a subcontractor working on a public works project and we have been referred to a surety bond company to obtain a bond for this job. We noticed there is an indemnity agreement that binds both our company and owners in the event the bond is enforced. Is this common practice? Is there any other alternative to surety bonds?

1 reply

Feb 9, 2021

As a contractor on a public works project, except if very limited circumstances, the GC will need performance and payment bonds. Sometimes GCs require the subs to do the same, but it is worth trying to negotiate the point. In fact, you should insist that the GC pay the premium, if it insists on a bond from you, its sub.

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