A surety bond is a risk transfer mechanism between a surety bonding company, the contractor, and the project owner. The agreement binds the contractor to comply with the terms and conditions of a contract. Typically, if the contractor can not perform the contract, the surety assumes the contractor's responsibilities and ensures that the project is completed. In South Carolina, a surety bond can only be called on to cover codes and standards violations. 

BOND LANGUAGE

Bonds generally contain four basic requirements:
- Total dollar amount required for the bond: The bond amount is generally set as a percentage of the estimated cost. This number can vary and can be up to 100 percent of the estimated cost of construction. Maintenance bonds often use a figure of 10 percent of construction cost as the required amount.
- Length of the bond: Bond lengths are typically required for a fixed rate of time following a project milestone, after which the bond is released. For construction performance bonds, this is usually after completion and final approval of the project.

- Requirements for notice of defect or lack of
maintenance: A period for completion of corrections is generally outlined after a notice of defect. The bond also establishes a time period for response from the bonding company, if the contractor fails to meet the obligations of the contract.

- Bond enforcement: If the contractor does not successfully complete all required work or violates any requirement of the bond, enforcement measures are outlined to ensure project completion and proper maintenance.