Last year, the value of construction put into place, excluding single-family residential construction, was about $550 billion. For Veteran contractors to secure some of that work, especially in the public sector, they must be surety bonded. To help Veteran contractors succeed, TVC has formed a partnership with the Surety and Fidelity Association of America (SFAA) to provide both current and emerging Veteran contractors and subcontractors with the education and training they need to do business with the government.

What is Surety Bonding?

Surety bonds provide financial security and construction assurance to project owners by verifying that contractors are capable of performing the work and will pay subcontractors, laborers, and material suppliers. There are three basic types of contract surety bonds: bid bond; performance bond; and payment bond.

By the Miller Act of 1935, federal law mandates performance bonds for public work contracts over $100,000 and payment bonds for contracts over $25,000. In addition, most states require performance and payment bonds on all state and local public works projects.

TVC's Surety Bonding Program

If you are a Veteran contractor or subcontractor seeking to do business with the government, the ability to obtain a surety bond is essential. Through TVC's partnership with SFAA, a trade association whose member companies collectively write the majority of surety and fidelity bonds in the United States, both existing contractors and emerging subcontractors get the bonding they need to succeed.

To find out whether you can benefit from TVC's Surety Bonding program, TVC has developed a straightforward application process. First, fill out the online Surety Bonding Questionnaire to the best of your ability and submit the form to TVC. TVC will use that questionnaire to quickly evaluate where your business stands on the path to surety bonding. Next, download the Surety Preparedness Checklist and begin gathering items on the checklist. Shortly after receiving your questionnaire, TVC will contact you to discuss your next steps.

TVC and SFAA will identify a knowledgeable surety bond producer who can review your company and help you fulfill the checklist. Your producer will help you identify a CPA who will review your financial statements to assess your company's financial capacity. Next, you have the opportunity to decide whether or not you want to enter TVC's Surety Bonding Program and gain SFAA as a strategic resource.