This infographic rallies around the question: “Which kinds of businesses or contracts trigger a contract-type surety bond?” It explains that contract surety bonds (performance, payment, bid bonds) are required when a party enters into a contract (often in construction or service delivery) and the other party (obligee) wants assurance the contract will be completed and obligations fulfilled.

The infographic likely categorises typical obligees: government agencies (federal, state), large institutional clients, newly-formed contractors bidding on projects, and international/or major projects with risk. It points out that many public contracts legally require a performance and payment bond; private owners may insist on them for large-scale jobs. Visual elements probably include a list of scenarios: general contractor bidding on public works, subcontractor working for a global firm, supplier entering a large-scale delivery contract, etc.

It emphasises that contract surety bonds protect the obligee by shifting risk to the surety when the principal fails to perform or pay. The takeaway: if you’re preparing to sign a major contract, especially where you’re relying on another party’s performance, it’s likely that a contract surety bond will be required — so you need to understand your bonding obligations, application process and cost. The infographic simplifies what might otherwise remain hidden – which contracts trigger bonds, and why.