How to Calculate Construction Bond Costs
Corporations and the federal government issue bonds almost every day. They do this to raise capital to pay for investments or projects. The state government is no different. It needs funding for infrastructure projects such as construction. To protect taxpayer dollars, government agencies require surety (construction) bonds before construction companies can bid for projects. This is also a common requirement for private projects. If a contractor cannot get bonded, the contractor will have difficulty finding work.