Bid Bonds
Assures the project owner that the contractor's proposal is legitimate — and that they intend to enter the contract and provide the required performance and payment bonds if awarded the work.
◇03 — Surety Bonds
Surety Bonds.
Helping contractors earn trust, secure opportunities, and build with confidence.
◇ What a Bond Is
A surety bond is not insurance.
A surety bond is a three-party guarantee between the Principal — usually the contractor — the Obligee, the project owner or government agency requiring the bond, and the Surety, the company standing behind the contractor's promise to perform.
Bonds create confidence for project owners that the work will be completed and paid for — and they allow qualified contractors to pursue larger, more competitive opportunities than they otherwise could. The right surety program is a growth tool, not a formality.
◇ Bond Types
The four contract bonds.
Performance Bonds
Guarantees that contractual obligations will be completed according to the contract documents — protecting the project owner if the contractor cannot finish the work.
Payment Bonds
Protects subcontractors, suppliers, and laborers by guaranteeing payment for work performed and materials furnished on the project.
Maintenance Bonds
Provides protection after project completion by covering workmanship and material defects during the specified maintenance period.
◇ Real Contractor Context
How a bonding program actually gets used.
Winning a first public project
Bid, performance, and payment bonds land on the same timeline as the award notice. We walk you through the surety's questions before they're asked and get the bond issued on the schedule the owner demands.
Increasing bonding capacity
Single-job and aggregate limits should grow with the backlog — not lag behind it. We build the case with the underwriter using financials, WIP, and project narratives that reflect where the company is actually headed.
Meeting owner requirements
AIA forms, dual-oblige requirements, warranty language — each owner wants something specific. We handle the drafting and negotiation so the bond satisfies the contract without exposing you to obligations beyond it.
Preparing financial statements for the surety
Reviewed or audited statements, WIP schedules, and a bank line letter tell a story. We coordinate with your CPA so the story reaches the underwriter clearly the first time — and the response comes back faster.
◇ License & Permit Bonds
Compliance, guaranteed.
License and permit bonds are required by governmental agencies to ensure businesses comply with applicable laws and regulations. We place a wide range of license and permit bonds — with renewal dates tracked so filings never lapse — for contractors, professionals, and businesses across regulated industries.
Contractor License Bonds
Right of Way Bonds
Wage & Fringe Benefit Bonds
Soil Erosion Bonds
Notary Bonds
Motor Vehicle Dealer Bonds
Mortgage Broker Bonds
◇ Why Bonds Matter
A partner across the entire lifecycle.
Phase 01
Qualification
Pre-qualifying the contractor with the right surety before opportunities appear.
Phase 02
Capacity
Establishing single-job and aggregate limits that match ambition and financials.
Phase 03
Award
Bid, performance, and payment bonds issued on the timelines projects demand.
Phase 04
Execution
Change orders, additional bonds, and mid-project needs handled without friction.
Phase 05
Completion
Coordinating final acceptance, lien releases, and bond close-out with the obligee.
Phase 06
Warranty
Maintenance obligations tracked and supported through the full warranty period.
We remain involved through every phase — not just when the bond is issued. That continuity is what turns a bonding relationship into a growth program.
◇ Our Process
How a bonding program is built.
Step 01
Contractor Review
We start with your operation — leadership, work-in-progress, project mix, and growth plans.
Step 02
Financial Analysis
A close read of financial statements, backlog, and cash position to frame the story we tell the surety.
Step 03
Surety Market Placement
Matching your business to the surety partner most suited to your class of work and size of program.
Step 04
Underwriter Negotiation
Advocating on capacity, rates, and terms with underwriters who know us and trust our submissions.
Step 05
Bond Issuance
Bid, performance, payment, and specialty bonds issued on the schedule the project demands.
Step 06
Ongoing Program Growth
Regular reviews to expand single-job and aggregate capacity as your company grows.
◇ Working Together
What it’s like working with AB Hurley.
- ◇ 01
We understand how contractors grow.
From your first bonded job to a nationwide program, we build capacity in step with the business — never behind it, never ahead of what the financials support.
- ◇ 02
We maintain strong relationships with leading surety markets.
Decades of underwriting relationships mean the surety knows us before they know the submission. That trust translates directly into capacity, terms, and speed.
- ◇ 03
We prepare submissions before underwriters ask.
Financials, WIP schedules, project narratives, and contract detail arrive complete. Underwriters respond faster and more favorably when the story is told well the first time.
- ◇ 04
We advocate for additional capacity as your company grows.
Bonding capacity is a strategic asset. We push for the single-job and aggregate limits that let you pursue the next tier of work — and we make the case with real financial substance.
- ◇ 05
We become an extension of your leadership team.
The relationship is direct, personal, and long-term. We sit at your table for the conversations that matter — pursuits, partnerships, succession, and growth.
- ◇ 06
We plan bonds before they are needed.
We track backlog, work-on-hand, and the pursuits on your board, monitor remaining capacity against them, and prepare the surety early — so a bid deadline is never the first time the underwriter hears about the job.
◇ Frequently Asked
Questions we hear often.
Have a specific question? Ask a surety advisor directly.
Contact Our TeamBuild bigger with confidence.
Whether you're bidding your first public project or managing a nationwide bonding program, AB Hurley provides the guidance, relationships, and experience to help you move forward.