Surety bonds and strategies serve as the key building blocks for success in any given construction project. At their core, these bonds are a three-party agreement between the party that needs the bond, like a construction company or contractor, along with the surety group and obligee – the entity requiring the bond. According to the Florida Surety Association, bonds even help screen out unqualified contractors and give the assurance that the contractor awarded the project is able to perform the job, achieve each goal and maintain a bright future for their business.
For our team at Affinity Surety Group – a close affiliate of Boyd Insurance & Investments – it’s about more than simply providing bonds and strategies. We help companies gain a competitive advantage in an ever-expanding construction industry across Florida, while offering transparency, honesty, support and a true partnership. Here are three reasons why a tailored relationship and customized strategies are important for businesses, like yours, in the Sunshine State.
Construction is a Risky Business
The construction industry is riddled with risks, and a substantial number of contractors – both major corporations and small businesses – encounter financial difficulties each year. Many of these enterprises face hurdles and fail before completing projects or fail to settle payments to subcontractors and suppliers. Affinity Surety is an excellent example of a one-stop-shop for mitigating the many stressors that come with construction, as we have an extensive blend of insurance, surety and financial industry expertise. Contact Jamie Wood, President of Affinity Surety and Boyd’s Director of Business Development, to learn more about our unique strategies, crafted to protect your business from potential challenges.
Sureties Have Paid Out Billions
Surety groups, like Affinity Surety, have collectively paid billions because of contractor failures on bonded projects, protecting owners from bearing these costs. Bonds have proven to be indispensable in mitigating financial risks associated with construction jobs. In fact, since 1998, the surety industry has protected more than $11.5 trillion in contract and commercial exposure, according to the Surety & Fidelity Association of America.
More Private Projects Are Requiring Bonds
Owners of private building projects are increasingly requiring surety bonds to shield themselves – and their stakeholders – from the colossal expenses resulting from contractor failures. According to a 2022 Earnst & Young report prepared for the SFAA, projects with no surety insurance cost 85% more to complete than surety-bonded projects. The organization also found that 50% of owners and developers believe projects with surety bonds are more likely to finish on or ahead of schedule.