During uncertain times, people look for a security blanket of added protection when embarking on new projects, and surety bonds are one way to provide that. For decades now, surety bonds—typically three-party agreements between the surety, contractor/subcontractor and project owner—have been required for most public construction projects. Recently, and largely stemming from uncertainties caused by COVID-19, ongoing supply chain woes, and material shortages and inflation, many more owners and investors have begun requiring bonds for private construction projects, too.

For construction attorneys, it's now critical to understand the ins and outs of surety bonds and how they're used in the context of private projects.