How to Calculate Construction Bond Costs Corporations and the
federal government issue bonds almost every day. They do this to
raise capital to pay for investments or projects. The state
government is no different. It needs funding for infrastructure
projects such as construction. To protect taxpayer dollars,
government agencies require surety (construction) bonds before
construction companies can bid for projects. This is also a
common requirement for private projects. If a contractor cannot
get bonded, the contractor will have difficulty finding work.