Contract Bonds

1. A Contract Bond is a type of surety bond that guarantees the performance of a specific contract.

2. Contract Bonds are usually required by the contracting party to ensure that the contractor will fulfill their obligations as stated in the contract.

3. Contract Bonds are issued by a surety company, which is a third-party entity that guarantees the performance of the contractor.

4. Contract Bonds are typically required for construction projects, but can also be used for other types of contracts.

5. Contract Bonds are typically written for a specific amount, which is the maximum amount that the surety company will pay out if the contractor fails to fulfill their obligations.

6. The surety company will typically require the contractor to provide collateral, such as a cash deposit or a letter of credit, in order to secure the bond.

Some Good Statistics around Contract Bonds

1. The total value of contract bonds issued in the U.S. in 2019 was $14.2 billion.

2. The average contract bond amount in 2019 was $1.7 million.

3. The total number of contract bonds issued in 2019 was 8,400.

4. The average contract bond premium rate in 2019 was 1.5%.

5. The total value of contract bonds issued in the U.S. in 2020 was $13.4 billion.

6. The average contract bond amount in 2020 was $1.6 million.

7. The total number of contract bonds issued in 2020 was 8,200.

8. The average contract bond premium rate in 2020 was 1.4%.

9. The total value of contract bonds issued in the U.S. in 2021 is estimated to be $14.5 billion.

10. The total number of contract bonds issued in 2021 is estimated to be 8,500.