When most people go to a sports stadium, see that a new hospital has opened, or watch a skyscraper rising, they notice concrete, steel, and heavy machinery.
But Surety professionals see more.
They see the financial and legal safeguards that make these projects possible. At the heart of those safeguards lies the Surety bond—a financial tool that ensures trust, performance, and completion in construction and infrastructure development.
Contract bonds, performance bonds, and payment bonds are more than compliance tools—they’re the financial guarantees that allow projects to break ground with confidence. Every day this behind-the-scenes industry enables contractors, electricians, and plumbers to deliver reliable work that helps build America.
Surety protects taxpayers, workers, and project owners. And, by mitigating risk, providing financial security, and guaranteeing project completion, Surety makes sure jobs get done.
A Solid Foundation: 20th-Century Infrastructure
The Hoover Dam (1931)
Surety first proved its value on a grand scale with the Hoover Dam. Construction took place during the Great Depression, with high financial stakes and a gigantic budget for the time: $49 million (over $1B inflation adjusted). The Hoover was one of the world’s most ambitious public works and, at 726 feet, the world’s tallest dam. It was built thanks to an innovative approach to engineering and Surety. The dam was unprecedented in size and complexity.
The project was so big that no single Surety company could underwrite it: this led to the first instance of co-Surety. Twenty-four companies came together to issue the largest-ever Surety bond, for $5 million, which allowed construction to go ahead. This bond guaranteed that contractors would deliver despite significant economic instability.
New Deal Projects (1930s–40s)
During the New Deal era, massive employment and infrastructure programs like the Works Progress Administration (WPA) and Public Works Administration (PWA) built and improved bridges, utilities, and roads nationwide. These projects were underpinned by Surety bonds that protected taxpayers from contractor defaults and ensured accountability, transparency and completion.
The WPA didn’t just create employment during a period of scarcity. It also built and renovated infrastructure that Americans still use today:
- 39,370 schools
- 2,550 hospitals
- 1,074 libraries
- 2,700 firehouses
- 1,050 airports
- Thousands of recreational buildings.
The WPS also dug over 1,000 tunnels and surfaced 639,000 miles of roads. Surety allowed thousands of contractors to participate—backed by bonds that enforced standards and accountability.
Post-World War II Boom (1950s–1970s)
Post–World War II, America entered a golden age of infrastructure. As the country expanded, so did the role of Surety. The Interstate Highway System (which President Eisenhower considered one of his greatest achievements), urban development, hospitals, airports, and public schools—many of these were built under Surety contracts. Those assured that federal and state governments were protected from contractor default or nonperformance. Surety wasn’t just a financial layer; it was an enabling mechanism for rapid national growth.
Modern Projects, Modern Pressures: Surety in the 21st Century
As construction complexity has increased, the demands on Surety professionals have grown. Fortunately, our industry has proven resilient and adaptive. Iconic, complicated projects—Golden Gate Bridge, Denver International Airport, and the New York City Subway system—were built with bond-backed contracts.
The Big Dig (2000s)
The Big Dig was one of the most complex urban infrastructure projects in U.S. history, and it successfully transformed downtown Boston. However, during construction it became known for cost overruns and delays, but Surety bonds helped ensure accountability and successful completion despite those challenges.
Disaster Recovery (2005-2012)
After Hurricane Katrina (2005) and Superstorm Sandy (2012), Surety bonds accelerated rebuilding by ensuring contractors delivered on their commitments. Those bonds were key to efficient and reliable work, helping people who had lost everything to recover more quickly.
Why Surety Bonds Matter More Than Ever
Surety bonds are central to the infrastructure of the future. (For example, they are an important aspect of the Los Angeles Metro expansion, scheduled to be completed in time for the 2028 Olympics.) Here’s why our work remains essential:
Taxpayer Protection: Public contracts backed by bonds drastically reduce the risk of fraud, default, cost overruns, and incomplete work or abandonment.
Economic Stability: Payment bonds ensure the stability of supply chains and economies by guaranteeing payment to subcontractors and vendors.
Future-Proofing Infrastructure: Bonds adapt to new challenges, such as climate resilience, tech-driven construction and economic uncertainty. As construction embraces new technologies, Surety products continue to evolve to cover new materials, methods, and risks.
A Quiet Engine of National Progress
Surety bonds may not make headlines, but they have helped drive power over a century of American development. From the railroads that united the nation to the highways that crisscross it, to the fiber optic networks that help it innovate, bonds have underwritten the nation’s progress. Today, Surety bonds back more than $500 billion in U.S. construction projects each year, according to the National Association of Surety Bond Producers (NASBP), and the market is expected to grow in response to increasing infrastructure investment.
So whether you’re working as an agent, broker, underwriter, or claims professional, you can feel proud that your profession is a vital force that continues to build, protect, and advance America, one bond at a time.
