1. Understanding The Benefits Of Surety Bonds

2. What is Surety Bonding? Surety ObligeePrincipal

3. Types of Surety Bonds Bid Bond Performance Bond Payment Bond

4. Types of Surety Bonds Bid Bond Performance Bond Payment Bond

5. Types of Surety Bonds Bid Bond Performance Bond Payment Bond

6. Benefits of Surety Bonds Provide capable & qualified contractors Assure project completion Offer financial security Technical, managerial, or financial assistance Surety Bonds

7. Benefits of Surety Bonds Reduce risk of liens filed by subcontractors, laborers, & suppliers Protect taxpayer dollars Smoother transition from construction to permanent financing Lower costs Surety Bonds

8. Surety Bonds vs. Letters of Credit Surety CreditBank Credit PremiumInterest Expect reimbursement if loss Repay loan Principal benefit of surety credit Borrower has benefit of bank $

9. Who Benefits From A Surety Bond?

10. Primary Decision Makers Surety assures qualified contractor Surety provides expertise, experience, & assistance In event of contractor failure, surety handles & completes project Private Owners

11. Primary Decision Makers Assures project will be built according to terms & conditions of the contract Lender can be dual obligee with direct rights under the bond Bankers & Lenders

12. Primary Decision Makers Protects taxpayer dollars Assures that lowest bidder is capable of completing the project Necessary payment protection for subcontractors & suppliers Public Owners

13. Influential Advisors Architects/ Engineers Surety Bonds DevelopersLenders Owner Risk managers Attorneys Architects Engineers CPAs Subs Contractor

14. Surety Bonds Financial Security Construction Assurance

15. For More Information Surety Information Office 1828 L St. NW, Suite 720 Washington, DC 20036 202-686-7463 | Fax 202-686-3656 www.sio.org | sio@sio.org