Case Study · Surety & Construction Risk
Up to $9.36 in Protected Wellbeing per $1 of Surety Premium in a High-Risk Scenario
A national assessment examined how performance and payment bonds protect public infrastructure projects, workers, businesses and households across status-quo and higher-risk construction insolvency scenarios.
High-risk scenario
$9.36 social value / $1 premium
Surety Association of Canada · 2025
What the Work Shows
Under a higher-risk construction scenario, performance and payment bonds were estimated to protect up to $9.36 in wellbeing for every $1 of premium paid on public infrastructure projects. The analysis also found that non-bonded construction enterprises were ten times more likely to become insolvent than bonded companies, and that the value of protection rises materially as sector risk increases.
In the status-quo risk case, the report estimated $1.32 in protected social value per $1 of premium; the $9.36 figure applies to the higher-risk scenario. Surety is usually described as financial protection, but the social-value lens makes the workers, households, suppliers and communities behind that protection visible.
View the public CANCEA source →A Connected View of Value
The analysis follows consequences through the people affected, compares outcomes across plausible alternatives, and keeps economic, fiscal and wellbeing effects connected rather than reporting each in isolation.
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