Construction Bonds, Policy Moves, and a New Address📍

The Surety Place July 2026 Newsletter

Construction Bonds

A construction bond is really a family of guarantees rather than a single instrument. As a form of contract bond applied to the building trades, it covers the key obligations that arise at different stages of a job, including bid, performance, payment, and warranty requirements.

Not only is there a question of what each bond does, but which bonds a project needs, when they come into play, and whether the contractor has the capacity to support the work.

These question becomes especially important during the busy summer months, when contractors are often bidding one job, building another, and wrapping up a third at the same time. When you look at bonding through the project timeline, the purpose of each bond becomes much clearer.

Sureties don’t weigh a bond in isolation. Instead, it looks at work on hand, single and aggregate limits, and how a new project fits into the contractor’s overall backlog. That’s why capacity can feel comfortable in the spring, then tighten by mid-summer once several bids are awarded close together.
The accounts that move most smoothly through peak season are typically the ones prepared in advance, with up-to-date financials and work-in-progress schedules ready before the surge begins.

That kind of preparation is where a surety specialist adds the most value. With specialty programs and access to A-rated markets, there’s flexibility to structure more complex or non-standard accounts — especially when projects are brought to the table early.

Bonding Policy Watch

Federal advocacy has been active this spring and early summer, with NASBP pushing for stronger bonding protections on federally supported infrastructure work. In March 2026, NASBP and SFAA brought a record group of surety professionals to Washington to meet with lawmakers, including support for the Water Infrastructure Subcontractor and Taxpayer Protection Act, which is aimed at strengthening payment protections on certain WIFIA-funded projects and public-private partnerships. On June 22, 2026, NASBP also filed support for extending FAR Part 28 information collection, which keeps bid, performance, and payment bond requirements front and center on federal construction work.

These developments are a good reminder that the surety product remains a practical tool for risk control and project delivery, not just a compliance requirement.

View NASBP 2026 Agenda

The Surety Place Has A New Place! 

We’re excited to share that The Surety Place is relocating this August. We’re moving a quick half mile down the road to our new office at:

Everything you count on stays exactly the same: the same reliable service, the same familiar agents, and the same phone number and email addresses you already use to reach us. The only thing changing is our address. We’ll share the official move date as it gets closer, and we look forward to continuing to serve you from our new space.

Strong Foundations, Strong Future

This 4th of July is a great time to celebrate the things this country was built on: freedom, grit, hard work, collaboration, and the kind of determination that turns an idea into something lasting. With America’s 250th anniversary upon us, it feels especially fitting to pause and appreciate the values that have carried this country forward through every generation. It’s also a chance to enjoy the fun side of summer — cookouts, fireworks, parades, cornhole, and maybe a little extra pie. It’s a nice reminder that big things are built on strong foundations, like a strong community, a strong business, or even a solid bond. When those foundations are steady, they create the kind of strength that supports growth for a bright and sure future.