Contract Surety Bonds

Contract surety bonds provide financial security and construction assurance on building and construction projects. They guarantee to the project owner (obligee) that the contractor (principal) is qualified to perform the work and will pay certain subcontractors, laborers and material suppliers. If the contractor defaults, the surety guarantees that the obligations will be met.

Merchants issues contract surety bonds through a wide network of appointed insurance agents across the nation. If you’re in need of a surety bond, reach out to an independent insurance agent near you.

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Contract surety bonds include

Bid bonds

Financial assurance that the bid has been submitted in good faith, and that the contractor intends to enter into the contract at the price bid and provide the required performance and payment bonds. Learn more.

Performance Bonds

Protect the owner from financial loss should the contractor fail to perform the contract in accordance with its terms and conditions. Learn more.

Payment Bonds

Guarantee that the contractor will pay certain subcontractors, laborers and material suppliers associated with the project. Learn more.

Maintenance Bonds

Guarantee against defective workmanship or materials for a specified period.

Subdivision Bonds

Provide financial assurance that a developer will complete required subdivision improvements such as the installation of sidewalks, streets, sewers or other public infrastructure. Learn more.


Merchants writes a wide variety of other bonds for contractors. Contact us for more details.