Are surety bonds generally written for the duration of the contract?

Surety bonds are indeed generally written for the duration of the contract. These bonds serve as a guarantee that the obligations outlined in a contract will be fulfilled according to its terms. When a surety bond is issued, it assures the obligee (the party that requires the bond) that the principal (the party obtaining the bond) will adhere to the agreed-upon requirements of the contract.

If the principal fails to meet these obligations, the surety company steps in to fulfill the commitment or compensates the obligee for the financial loss. This agreement typically aligns with the timeline of the contract, which is why the bond is effective for the duration of that contract.

Surety bonds are not limited to construction projects; they can be used in various industries where contractual obligations need to be secured, making the option that applies only to construction projects inaccurate. Additionally, while some contracts may have specific conditions that lead to variations in bond duration, in general terms, the bond is indeed aligned with the contract's duration.