UNSPSC 64122402: Contract surety bond

Contract bonding (or construction bonding) guarantees that a contractor or developer will fully complete the construction project for which they've bid according to specifications and will pay all laborers, subcontractors and suppliers. This type of surety bonding includes: Bid bonds, Payment, Performance, Subdivision, Supply and Site Improvement bonds.

UNSPSC 64122402 Contract surety bond, a Commodity code, covers bid security, performance bonds, and payment bonds that state and local governments require contractors to post as financial guarantees during the solicitation and execution phases of construction and major service contracts. The bonds protect public agencies from contractor default and ensure completion of work or correction of defects. State and local jurisdictions soliciting under this code span county environmental agencies, city public works and development departments, and school districts. The work involves underwriting and issuing surety instruments tied to specific construction projects—from landfill cell construction and environmental facility development to facility renewal and insurance procurement, with bond amounts typically sized as percentages of contract value (commonly 5 percent for bid security and 100 percent for performance and payment bonds combined).

Recent activity shows Maryland Environmental Service seeking bid security and performance/payment bonds for the Brown Station Road Sanitary Landfill Area C Infill Cell C-2-3 construction (Invitation for Bids due April 24, 2026), requiring bid security at 5 percent of base bid and 100 percent performance and payment bonds upon award; the City of Frisco, Texas, issuing an RFP for Construction Manager at Risk services for the Environmental Collection Center (due March 19, 2026) with an estimated construction budget not exceeding $13.5 million and requiring a 100 percent performance and payment bond within 10 days of contract execution; and Clarke County School District in Georgia soliciting property and liability insurance renewal through an RFP (proposal deadline May 4, 2026) managed by McNeary Consulting Services for a five-year term. The geographic spread includes Maryland, Texas, and Georgia, with the most recent opportunities concentrated in state environmental agencies and municipal development departments. Surety bond underwriting activity under this code appears driven by capital construction and major renovation projects where public entities mandate financial protection instruments.