Notice. This page is informational. Surety bonds are issued by licensed surety companies and remain subject to underwriting, documentation review and contractual requirements.
Surety Bond Procurement Support For Commercial And Infrastructure Projects
Many construction, infrastructure and energy projects require financial guarantees before a contract can be awarded. Project owners often demand surety bonds to ensure that contractors fulfil their obligations under the agreement.
FG Capital Advisors assists companies that require surety bonds by preparing the transaction file and introducing the request to licensed surety companies capable of underwriting the bond.
Request A QuotePurpose Of A Surety Bond
A surety bond is a three-party agreement involving the principal (the contractor or project sponsor), the obligee (the project owner) and the surety company issuing the bond. The surety guarantees that the principal will perform the contractual obligations.
If the principal fails to perform according to the contract, the surety company compensates the obligee according to the bond terms and then seeks recovery from the principal.
Types Of Surety Bonds Used In Commercial Projects
- Bid bonds required during tender submission
- Performance bonds guaranteeing contract execution
- Payment bonds protecting subcontractors and suppliers
- Maintenance bonds covering post-completion obligations
- Contract guarantee bonds for large infrastructure projects
Our Role In The Surety Bond Process
Many contractors require surety bonds but do not have a direct relationship with a surety provider. FG Capital Advisors supports clients by preparing the underwriting file and introducing the transaction to surety companies capable of issuing the bond.
- Project and contract review
- Preparation of underwriting documentation
- Coordination with licensed surety companies
- Submission of the bond request for underwriting
- Support during the issuance process
Fee Structure
FG Capital Advisors charges a transaction preparation fee for reviewing the project, preparing the underwriting file and coordinating the submission to surety providers.
The surety bond premium itself is paid directly to the surety company that issues the bond. Premium levels depend on the size of the bond, the contractor's financial profile and the risk assessment performed by the surety underwriter.
Frequently Asked Questions
What is a surety bond?
A surety bond is a financial guarantee issued by a surety company ensuring that a contractor or project sponsor fulfils contractual obligations.
What types of surety bonds are commonly required?
Common bonds include bid bonds, performance bonds and payment bonds used in construction and infrastructure projects.
Do you issue the bonds directly?
No. Bonds are issued by licensed surety companies. FG Capital Advisors assists with preparation and introduces the transaction to surety providers.
What fees apply?
FG Capital Advisors charges a transaction preparation fee while the bond premium is paid directly to the surety company.
Who typically needs surety bonds?
Contractors, infrastructure developers, engineering firms and project sponsors executing commercial or public procurement contracts frequently require surety bonds.
If your company requires a surety bond for a commercial or infrastructure project, submit your transaction details and request a quote.
Request A QuoteDisclosure. FG Capital Advisors provides capital advisory and transaction preparation services. Surety bonds are issued exclusively by licensed surety companies following their own underwriting procedures.
