Construction worker carrying wooden beam at construction site.

Contract surety bonds

UFG Surety contract bonds

For more than six decades, contractors have trusted UFG Surety with the bonds they need to grow their business.

Also known in the industry as a construction bond, construction bonding or a contractor bond, this type of construction surety bond guarantees that a contractor will complete the construction project according to their bid and will pay its subcontractors, laborers and all suppliers.

Beyond the paperwork, a contract surety bond creates a valuable partnership between a contractor and the surety company. Having the support and financial backing of a trusted surety company is crucial to the growth and development of the contractor. 


Bid bond
Assures the contractor will enter into contract at the price bid and provide the required payment and performance bonds. 

Payment bond
Promises the contractor will pay all suppliers, subcontractors, and laborers work completed on the project. 

Performance bond
Promises the contractor will perform the contract according to its terms and conditions. 

Maintenance bond
Also called a warranty bond, it is a promise that any material or workmanship defects discovered in the original construction will be repaired during the warranty period. 


UFG surety bonds fit a variety of needs by size and by type:

A program for new or infrequent surety bond users. For current UFG agents, the entire process can be completed online. Find a UFG agent near you.
  • Provides bonds up to $500,000
  • Simplified application and indemnity.
  • Response available within 24 hours.
Designed for those with needs outside the Quick program, but may not have required information for bonding through a traditional program. We’ll customize a program without the need for a full submission.
  • Contractor’s questionnaire.
  • Personal financial statement.
  • Year-end financial statements with tax returns for two prior years.
Traditional approach for established contractors. Focused on building solid working relationships for future growth.
  • Single surety bonds in the $500,000 to $40 million range; work programs up to $100 million. 
  • Requirements:
    • Contractor’s questionnaire.
    • Personal financial statement.
    • Year-end financial statements prepared by a CPA for three prior years.
    • Details on bank line of credit.

Why is it important to get pre-qualified? 

Just as you check into financing before buying equipment or real estate, it’s best to determine how much bonding capacity you qualify for before bidding on jobs that require bonding. Even if you’ve obtained small license and permit bonds in the past, we suggest going through the prequalification process if you’ll be in the market for bonds for contractors such as bid bonds or performance bonds. These types of bonds are subject to more underwriting than license bonds, permit bonds and other types of non-contract commercial surety bonds. Even larger, established sub-contractors may have to provide a bid or performance bond depending on the owner they are working for, or who is funding the project.


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