Construction Surety Bonds
Evergreen Surety is an independent construction bond agency headquartered in Denver, Colorado. We place surety bonds for contractors, subcontractors, homebuilders, and developers throughout the United States and Canada.
Surety is all we do. No insurance, no financial products. That focus is backed by appointments with 15 surety carriers, which means more options for your bond program and better outcomes when the first answer isn’t yes.
What are Construction Surety Bonds
A construction surety bond is a guarantee. The contractor (the principal) guarantees to the project owner (the obligee) that the work will be completed and that subcontractors and suppliers will be paid. A surety carrier backs that guarantee. If the contractor defaults, the carrier steps in to resolve the situation.
Three parties. One agreement. That structure is what separates surety from every other financial product in construction.
Surety is not insurance
A surety bond looks like an insurance policy, but it works differently. Insurance expects losses and prices them into the premium. Surety underwriters aim for a zero loss ratio. They’re making a credit decision that the contractor will perform.
That difference matters because of indemnification. When a contractor signs a general indemnity agreement (GIA) with a surety carrier, the contractor’s corporate and personal assets stand behind the bond. If the carrier pays a claim, it will look to recover those losses from the principal, including owners and their spouses. It’s real skin in the game. It’s also the reason surety carriers are so thorough in deciding who they’ll support.
Prequalification is a credential
Before a carrier issues a bond, it reviews the contractor’s financials, work history, and capacity. That process is rigorous. But it also says something about the contractor who passes it. A surety carrier has looked at your numbers, reviewed your track record, and decided you can do the work. Project owners and general contractors take notice.
Types of Construction Surety Bonds We Handle
We place the full range of construction surety bonds. Here’s what that includes and when each one comes into play.
Bid Bonds
A bid bond backs your bid. It guarantees to the project owner that you’ll sign the contract and provide the required performance and payment bonds if you’re awarded the work. Most public projects require one, and the limit is typically 5% to 10% of the bid amount.
Performance and Payment Bonds
Performance and payment bonds are issued together, each equal to the contract value. On a $1 million contract, that means $1 million in performance coverage and $1 million in payment coverage, for $2 million in total protection.
Maintenance Bonds
Maintenance bonds cover defective workmanship or materials for a set period after project completion. They’re often included as part of a performance bond, though they can be issued separately when the contract calls for it.
Supply Bonds
Supply bonds guarantee that a material supplier will deliver goods on time and at the agreed price. They come into play when the project owner or general contractor wants assurance that the supply side won’t hold up the job.
Subdivision Bonds
Subdivision bonds guarantee that a developer will complete public improvements, including streets, sidewalks, curbs, sewers, and drainage, to the standards the municipality requires. They’re typically a condition of development approval.
These bonds can be tougher to place. Developers and homebuilders don’t always produce the standardized financial statements that surety carriers look for. We work with developers to compile their financials and structure their submissions so the bond gets done.
How We Support Your Bond Program
Establish your program
If you’re getting bonded for the first time, we’ll show you exactly what carriers need and help you put it together. That includes compiling your financial documentation, preparing your submission, and matching you with a carrier that fits where your company is right now. If you don’t qualify through standard channels, we can work through the SBA Bond Guarantee Program.
We don’t just place your first bond and move on. We set your program up so it can grow as your company does.
Improve your existing program
Your bond program should keep pace with your business. If your capacity hasn’t caught up with the work you’re chasing, your rate is too high, or your indemnity terms are heavier than they need to be, those are problems we can fix.
We dig into your financials, benchmark your KPIs, and put together a submission that gives underwriters a clear picture of where your company stands. Then we place it with the carrier that offers the best combination of capacity, rate, and terms.
Hard-to-place bonds
If another agent told you a bond can’t be placed, that’s worth a second opinion.
There are a variety of tools and strategies for obtaining hard-to-place bonds. That said, often it is simply a process of communicating the story effectively to a surety underwriter. Evergreen Surety works with a wide range of surety carriers and they have deep relationships with underwriters that focus on all sizes of contractors.
Contractors and Developers We Work With
General Contractors
We work with general contractors across commercial and vertical construction, heavy highway, civil infrastructure, and tenant improvement. Whether you’re bonding a single project or managing a full program across multiple contracts, we understand the underwriting considerations specific to your scope of work.
Specialty Subcontractors
We place bonds for specialty trades including electrical, mechanical, plumbing, HVAC, structural concrete, steel erection, roofing, earthwork, asphalt paving, masonry, glazing, waterproofing, coatings, landscaping, and asbestos remediation. Each trade carries its own underwriting profile, and we know how to present yours to the right carrier.
Homebuilders and Developers
Homebuilders and developers often need subdivision bonds, site improvement bonds, or surety-backed letters of credit to satisfy municipal requirements. These accounts can be harder to place because the financial reporting isn’t always standardized. We’ve worked with developers to structure their submissions in a way that carriers can underwrite.
SBA Surety Bond Guarantee Program
We’re an SBA-appointed surety bond agency. That means we can place bonds through the SBA Bond Guarantee Program for contractors who don’t qualify through standard commercial channels.
Here’s how it works. The SBA guarantees the bond, which reimburses the surety carrier if a loss occurs. That guarantee gives carriers a reason to say yes to contractors they’d otherwise decline, especially those with thin or negative working capital.
The most useful piece of the program is how the SBA calculates bonding capacity. A bank line of credit, even if you haven’t drawn on it, counts as a current asset. The SBA allows you to multiply that available balance by 20 to determine your aggregate bond limit. A contractor with $100,000 available on their line of credit can access up to $2,000,000 in bonding through the program.
If you’ve been told you don’t have the working capital to support a bond, the SBA program may change that answer. Call us and we’ll walk you through whether you qualify.
Frequently Asked Questions
What is a construction surety bond?
A construction surety bond is a three-party guarantee between the contractor (principal), the project owner (obligee), and a surety carrier. It guarantees the contractor will complete the work and pay their subcontractors and suppliers. If the contractor defaults, the surety carrier steps in to resolve the situation.
How much do construction surety bonds cost?
Premiums for performance and payment bonds typically range from 0.5% to 3% of the bond limit. The rate depends on the contractor’s financial profile, credit history, experience, and the type of work being bonded. In most cases, the cost is built into the contract bid and doesn’t directly reduce your bottom line.
What do I need to qualify for a construction surety bond?
Carriers evaluate three things: character, capacity, and capital. Character is measured primarily through personal and corporate credit scores. Capacity is your track record of completing projects similar in size and scope to the one you’re bidding. Capital is your financial strength, including working capital, equity, and access to a bank line of credit. Even start-up contractors with a credit score above 675 can often qualify for bonds up to $400,000.
What is the difference between a performance bond and a payment bond?
A performance bond guarantees you’ll complete the project per the contract terms. A payment bond guarantees you’ll pay your subcontractors, suppliers, and laborers. They’re issued together, each equal to the contract value.
What if I've been declined for a surety bond?
A decline from one carrier doesn’t mean the bond can’t be placed. We’re appointed with 15 surety carriers, and each one has a different appetite and underwriting approach. We also have access to the SBA Bond Guarantee Program for contractors who don’t qualify through standard channels. If you’ve been told no, it’s worth a second conversation.
What is the SBA Surety Bond Guarantee Program?
The SBA guarantees bonds for small and emerging contractors who can’t access bonding through regular commercial carriers. The guarantee reimburses the carrier if a loss occurs, which gives them an incentive to write bonds they’d otherwise decline. We’re an SBA-appointed agency and can walk you through whether you qualify.
Do I need a surety bond for private construction projects?
Bonds aren’t legally required on private work. But more project owners and general contractors are requesting them as a risk management measure. If you’re already bondable, you have an advantage over competitors who aren’t. Being bonded signals that a surety carrier has reviewed your financials and decided you can perform.
Support for M/WBE and Service-Disabled Veteran Contractors
We work with minority-owned, women-owned, and service-disabled veteran-owned contractors. Bonding can be an extra hurdle for businesses in these programs, especially when working capital is limited or financial history is short. Our SBA appointment and access to 15 carriers give us more paths to get your bond placed than most agencies can offer.
If you’re certified M/WBE or SDVOSB and need a bond for an upcoming project, we’re set up to help.
Why Construction Surety Bonds Matter
Bonds are required on most public construction. The Miller Act covers federal projects over $150,000. Every state has similar requirements through Little Miller Acts. In Colorado, the threshold is $150,000 at the state level and $50,000 at the local level.
But bonds do more than keep you compliant.
Not every contractor can get bonded. The underwriting process filters for financial strength, experience, and capacity. If you pass, you’ve separated yourself from the contractors who can’t. The larger the bond you can carry, the less competition you face on bigger projects.
Being bondable is also a marketing tool. When a surety carrier agrees to back your work, it tells project owners and general contractors that a third party has reviewed your financials and decided you can perform. On private projects, where bonds aren’t legally required, more owners are requesting them as a risk management measure. If you’re already bondable, you’re already ahead.
Beyond the Bond
Obtaining your bonds is only one part of what we do. Through our consultative approach and relationships throughout the industry, we help your company develop resilience and profitability.
Financial Statement Analysis and KPI Benchmarking
Surety underwriters focus on specific ratios and metrics that most general-purpose accountants don’t prioritize. We review your working capital, equity, cash flow, and the indicators that are actually driving underwriting decisions on your account. If something is holding your program back, we’ll identify it and lay out a path to fix it.
When you need hands-on support, we can connect you with construction-oriented CPAs and fractional CFOs who understand how surety underwriting works. Tom Patton holds the Certified Construction Industry Financial Professional (CCIFP) designation, which means the person reviewing your financials understands construction accounting specifically.
Contract Review
We review contracts before you sign them. With years of experience and a database of contract review reports, we can flag liquidated damages clauses, warranty periods, pay-if-paid language, and other provisions that affect your risk exposure or bondability. We also know which municipalities and general contractors are willing to negotiate problematic terms, and which aren’t.
If you’re expanding into new states, we maintain legal and risk matrix reports for all 50 states and Canada. That means we can help you understand the legal landscape before you commit to a project in unfamiliar territory.
Why Contractors Choose Evergreen Surety
We do surety. That’s it. No insurance, no financial products, no split focus. Every hour we spend is on bonds, which means deeper carrier relationships and more informed conversations with underwriters.
We’re appointed with 15 surety carriers, so your account isn’t limited to one carrier’s appetite. We’re SBA-appointed, so we can place bonds for contractors who don’t qualify through standard channels. And we’re headquartered in Denver, Colorado, licensed throughout the United States and Canada.
But what our clients talk about most is how we work.
You get a dedicated point of contact. You won’t be passed off to a processor or stuck in a queue. When you need a bond, you call Eddie or Tom directly. When you have a question about a contract or a submission, you get an answer the same day. We communicate however works best for you, whether that’s phone, email, text, or video.
That responsiveness matters because surety is a transactional business on top of a long-term relationship. Every time you sign a new contract that requires a bond, you’re calling us. We need to be ready, and we are.
Your Surety Team
Tom Patton, President
Tom Patton founded Evergreen Surety in 2020 after 12+ years in the surety industry. He holds the Certified Construction Industry Financial Professional (CCIFP) designation, the only financial certification specific to the construction industry.
Tom is a former President of the Rocky Mountain Surety Association and a former board member of the Associated General Contractors of Colorado. He’s a member of the National Association of Surety Bond Producers (NASBP), the Construction Financial Management Association (CFMA), and Hispanic Contractors of Colorado.
He’s a regular speaker at Colorado Department of Transportation and Denver International Airport bond education programs, and a published author in CFMA and construction industry trade publications.
Evergreen Surety is an SBA-appointed agency under his leadership.
Eddie Maxfield, Surety Advisor
Eddie Maxfield is the primary contact for construction and energy bond inquiries. Reach him directly at 720-492-9258 or emaxfield@evergreensurety.com.
Talk to Us About Your Bond Program
Whether you need your first bond or your fiftieth, the first step is a conversation.
Call Eddie Maxfield at 720-492-9258 or email him at emaxfield@evergreensurety.com
Get In Touch
Thank you for your interest in Evergreen Surety. For general questions, feel free to complete the submission form. Or, better yet, pick up the phone and call 720-258-6182 to speak to one of our bonding agents.
We look forward to helping you create continuous revenue streams and increase your firm’s profitability through the bonding process.