What does surety mean in construction?
Short definition
A surety is a company that backs a bond and may be responsible if the bonded contractor fails to meet obligations.
Longer explanation
Sureties are involved in bid bonds, performance bonds, payment bonds, and default-related contract remedies.
Example in context
“The project team reviewed the surety during the construction phase.”
Common users
- Owners
- Architects
- Contractors
- Construction managers