Facts and Statistics on Construction Bonds

1. Construction bonds are a type of surety bond used to guarantee that a construction project will be completed according to the terms of the contract.

2. Construction bonds are typically required for projects with a value of $100,000 or more.

3. According to the U.S. Census Bureau, construction spending in the United States totaled $1.3 trillion in 2018.

4. The construction bond market is estimated to be worth $20 billion in the U.S.

5. In the U.S., the surety bond market is estimated to be worth $20 billion, with construction bonds accounting for approximately 25% of that amount.

6. Construction bonds are typically issued for a period of one year, but can be extended for up to five years.

7. The average construction bond rate is between 1-3%, depending on the size and complexity of the project.

8. Construction bonds are typically issued by insurance companies or surety companies.

Some Cool Facts on Construction Bonds

1. A construction bond is a type of surety bond used to guarantee that a construction project will be completed in accordance with the plans and specifications set forth in the contract.

2. Construction bonds are typically required by the owner of the project and are issued by a surety company.

3. The three parties involved in a construction bond are the principal (the contractor), the obligee (the owner of the project) and the surety (the company issuing the bond).

4. Construction bonds are typically required for projects that exceed a certain dollar amount, as determined by the state or local government.

5. Construction bonds are usually issued for a specific period of time, such as one year, and must be renewed each year in order to remain in effect.

6. Construction bonds are typically used to protect the owner of the project from financial losses in the event that the contractor fails to complete the project as specified in the contract.