What are contractor costs for liability insurance and bonding?

Federal and State governments require contractors to have liability insurance, which includes general liability insurance; property damage liability insurance; railroad, marine, automobile liability insurance; and workers' compensation insurance including subrogation for the owner. In addition, as of 1996 forty-nine States require the contractor to have some form of surety bond. Surety bonds include contractor bid, performance, payment, and maintenance bonds. Surety bonds are provided by licensed surety companies that commit their assets to support the performance and financial obligations of contractors and subcontractors. These bonds assure the owner that the contractor will perform according to the terms and conditions of the contract. The shorter installation time required for prefabricated bridges can lower liability insurance and bonding costs when compared to a conventional replacement project. Insurance and bonding costs can be a significant part of construction cost, with ...  more