Surety Bonds
Do Subcontractors Need Surety Bonds?
Subcontractors don’t typically need to bond directly to project owners — but GCs may require subcontractor bonds in their subcontracts, especially on large or risky scopes of work.
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Do subcontractors need surety bonds?
On public projects, the Miller Act requires the prime contractor (GC) to provide performance and payment bonds. Subcontractors are not required to bond to the owner. However, GCs can — and sometimes do — require their own subs to provide bonds.
When GCs require sub bonds: on high-value specialty scopes (structural steel, mechanical, electrical), when the sub is new to the GC’s work, or when the sub’s financial strength is uncertain. The GC is protecting their own performance bond from the risk of a sub defaulting.
If your GC requires you to provide a bond as a sub, contact Trade Safe. Subcontractor bonds are the same product as prime contractor bonds — they just flow to the GC rather than to the project owner.
Need a surety bond fast?
Trade Safe helps contractors get bonded same-day in most cases. We work with multiple surety markets to find the best rate for your situation.