United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office Resources, Community, and Economic Development Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1995-04-05 monographic deposited born digital GA 1.13:T-RCED-95-150 https://www.govinfo.gov/app/details/GAOREPORTS-T-RCED-95-150 P0b002ee180398d70 f:trc95150 DGPO 2010-08-12 2011-03-28 GAOREPORTS-T-RCED-95-150 machine generated eng fdlp REPORT GAOREPORTS-T-RCED-95-150 T-RCED-95-150 Surety bonds Construction industry Minority businesses Construction contracts Women-owned businesses Bid guarantees Insurance Financial analysis Small business contractors Testimony RCED This testimony discusses the use of surety bonds in the construction industry and presents the results of GAO's survey of small construction firms. The law requires contractors to provide surety bonds on all federal construction contracts worth more than $25,0000. Most state and local governments and some private-sector lending also require surety bonds. Surety companies decided whether firms have the experience and financial resources to do a given job and quality for a bond. Small businesses argue that bonding decisions made by surety companies often impede the development of small firms, especially those owned by women and minorities. Recent legislation directed GAO to survey small construction firms on their experiences in obtaining surety bonds. This report discusses (1) the percentage of firms that obtained bonds, (2) reasons some firms were given for denying the bonds, (3) additional conditions some firms had to meet to obtain surety bonds, and (4) changes in requirements for surety bonds on federal construction contracts. https://www.govinfo.gov/content/pkg/GAOREPORTS-T-RCED-95-150/html/GAOREPORTS-T-RCED-95-150.htm GAO/T-RCED-95-150 https://www.govinfo.gov/app/details/GAOREPORTS-T-RCED-95-150 Testimony GAO/T-RCED-95-150; Small Business: Access to Surety Bonds; Surety bonds Construction industry Minority businesses Construction contracts Women-owned businesses Bid guarantees Insurance Financial analysis Small business contractors