Contract Bonds

We deliver more than just bonds. We provide comprehensive financial advice to our construction clients in order to guide them in the development and maintenance of surety programs.

Our financial expertise gives us an advantage over our competitors. Our strategy is not simply to forward your financial statements to the various surety companies. The truth is, anyone can do that. Instead, we invest significant time and resources to understand your company and its financial condition. We know the concerns of surety underwriters and what they view as important when underwriting your bonding program. We deliver to our clients the most attractive bond programs available in the marketplace and guide them in the direction they want to take their company.

Partnering with Contractors


Explanation of surety underwriting criteria;
Identification and evaluation of surety markets;
Assessment of surety underwriting strengths and weaknesses;
Strategies to improve bonding capacity considering such factors as internal accounting and financial systems, financial reporting quality, balance sheet management, capital structure, subcontractor risk programs, collection practices, and banking relationship management.


Quarterly meetings to review performance;
Annual meetings prior to year-end to review internal financial performance and make any recommendations for year-end;
Communication with surety;
Maintaining a current file; and
Indemnity, contract and form analysis.


Current Contractor’s Questionnaire
Past three fiscal year-end financial statements. If current interim financial statement is available, please include.
Current personal financial statements on all owners, partners, &/or stockholders
Current bank letter of reference
Resumes on active owners and key people.
Copy of certificate of insurance (if not furnished by TIS)
Current contract status report

What is a Contract Surety Bond?

A surety bond is a written agreement where one party, the surety, obligates itself to a second party, the obligee, to answer for the default of a third party, the principal.

Contract Surety Bonds provide financial security and construction assurance on building and construction projects by assuring the project owner (obligee) that the contractor (principal) will perform the work and pay certain subcontractors, laborers, and material suppliers.

There are three basic types of contract surety bonds in construction:

  1. The Bid Bond: assures that the contractor’s bid was submitted in good faith, that the contractor intends to enter into the contract at the price bid, and that the contractor will provide the required performance and payment bonds.
  2. The Performance Bond: protects the owner from financial loss in the event that the contractor fails to perform the contract in accordance with its terms and conditions. Most performance bonds cover workmanship of the project for one year after completion.
  3. The Payment Bond: sometimes called a labor and material bond, protects certain specified tiers of laborers, subcontractors, and material suppliers against nonpayment by the contractor. Generally, these claimants may seek recovery directly from the surety company under the payment bond.


Chad Martin Vice President of Surety Email
James F. ‘Jim’ Oakes Surety Bond Client Executive Email
Lavonne Sherrod Senior Surety Bond Account Manager Email