# Surety bond agency software that keeps the bond, the obligee and the renewal date on one file

> A surety bond agency is a producer that places three party guarantees between a principal, an obligee and a surety, which makes the file a credit file rather than an insurance file. Federal construction work needs performance and payment bonds above $150,000 under FAR 28.102-1, the SBA guarantees 80 percent of bonds on contracts up to $9,000,000, and Treasury Department Circular 570 lists the companies certified to write federal bonds. Neurobird holds the bond, the credit behind it and the renewal clock on one record.

- URL: https://neurobird.com/suretybond/
- Product: Neurobird Surety Bond Agency Compliance Platform
- Niche: surety bond agency
- Buyer: surety bond agencies
- Status: in development, open for early access
- Updated: 2026-08-21

## What Neurobird Surety Bond Agency does

- Hold one file per bond: principal, obligee, bond form, penal sum, effective date and expiry
- Diary every renewal and continuation certificate before the obligee notices it is late
- Keep work in progress schedules, financials and indemnity agreements against the principal, each dated
- Track single and aggregate limits per principal so a new bid does not quietly break the program

## How it works

1. **Open the bond file** Principal, obligee, form number, penal sum and dates captured once, with the executed bond and power of attorney attached to it.
2. **Attach the credit** Work in progress schedule, financial statements and the general indemnity agreement sit against the principal, each stamped with the date it was taken.
3. **Watch the clock and the line** Renewals, continuation certificates and remaining room against the single and aggregate limit read off one screen before a bid goes out.

## From the source material

> Small Business Administration (SBA) can guarantee bonds for contracts up to $2 million, covering bid, performance and payment bonds for small and emerging contractors who cannot obtain surety bonds through regular commercial channels.

Source: Texas Department of Insurance, bond resources, https://www.tdi.texas.gov/commercial/pcbond.html

## Industry context

- **$150,000** FAR 28.102-1 requires performance and payment bonds on any federal construction contract exceeding this amount, under 40 U.S.C. chapter 31 subchapter III, the statute most people still call the Miller Act. (source: Acquisition.gov, FAR Part 28, https://www.acquisition.gov/far/part-28)
- **$35,000** Between $35,000 and $150,000 the contracting officer must select two or more alternative payment protections, such as a payment bond, an irrevocable letter of credit or a tripartite escrow agreement. (source: Acquisition.gov, FAR 28.102-1, https://www.acquisition.gov/far/part-28)
- **$9,000,000** The SBA guarantees 80 percent of bonds on contracts up to $9,000,000, or up to $14,000,000 with a federal contracting officer certification. The guarantee rises to 90 percent on contracts up to $100,000 and for HUBZone, 8(a), veteran owned and economically disadvantaged firms. (source: US SBA, surety bond partners and agents, https://www.sba.gov/for-partners/surety-bond-partners-and-agents/)
- **$500,000** On contracts up to $500,000 an agent can use the SBA Quick Bond Guarantee, submitting SBA Form 990 and SBA Form 994 through the E app system rather than the full standard package. (source: US SBA, surety bond partners and agents, https://www.sba.gov/for-partners/surety-bond-partners-and-agents/)
- **$50,000** Every Medicare DMEPOS supplier must post a surety bond of $50,000 for each NPI it maintains, which is the kind of commercial surety renewal that gets forgotten until billing privileges are revoked. (source: CMS, enroll as a DMEPOS supplier, https://www.cms.gov/medicare/enrollment-renewal/providers-suppliers/durable-medical-equipment-prosthetics-orthotics-supplies-dmepos)
- **570** Treasury Department Circular 570 is the complete list of companies certified to write or reinsure federal bonds under 31 U.S.C. 9304 to 9308. The current edition was updated on August 1, 2026. (source: Bureau of the Fiscal Service, surety bonds, https://fiscal.treasury.gov/about-us/doing-business-with-fiscal-service/surety-bonds)

## Pricing

- Single desk: $180 per agency, per month
- Agency: $420 per agency, per month
- Multi office: $760 per agency, per month

## Questions

### What is a surety bond agency?

A surety bond agency is a producer that places bonds between three parties: the principal who must perform, the obligee who requires the guarantee, and the surety that stands behind it. Contract surety covers bid, performance and payment bonds on construction work. Commercial surety covers licence, permit and court bonds. The agency does credit underwriting, not loss underwriting.

### What is the difference between a surety bond and insurance?

Insurance is a two party contract that expects losses and prices them in. A bond is a three party guarantee that expects no losses, and when the surety pays it seeks recovery from the principal under a general indemnity agreement. That is why the file is a credit file and why the personal indemnity matters more than any form.

### When is a performance bond required on federal construction?

Under FAR 28.102-1, which implements 40 U.S.C. chapter 31 subchapter III, performance and payment bonds are required for any federal construction contract exceeding $150,000. Between $35,000 and $150,000 the contracting officer selects two or more alternative payment protections instead.

### How does an SBA guarantee change what we can write?

The SBA Surety Bond Guarantee program backs 90 percent of bonds on contracts up to $100,000 and on bonds for disadvantaged, HUBZone, 8(a) and veteran owned firms, and 80 percent on other contracts up to $9,000,000, or $14,000,000 with a federal contracting officer certification. It moves the credit line, so the file still has to be right.

### Does this replace our agency management system?

No. Commissions, billing and the general ledger stay where they are. What lives here is the bond file: obligee form, penal sum, dates, indemnity, work in progress and remaining capacity, joined so a renewal or a bid answer takes seconds.

## Sources

- [FAR Part 28, bonds and insurance](https://www.acquisition.gov/far/part-28)
- [US SBA, surety bond partners and agents](https://www.sba.gov/for-partners/surety-bond-partners-and-agents/)
- [Bureau of the Fiscal Service, surety bonds](https://fiscal.treasury.gov/about-us/doing-business-with-fiscal-service/surety-bonds)
- [CMS, enroll as a DMEPOS supplier](https://www.cms.gov/medicare/enrollment-renewal/providers-suppliers/durable-medical-equipment-prosthetics-orthotics-supplies-dmepos)
- [Texas Department of Insurance, bond resources](https://www.tdi.texas.gov/commercial/pcbond.html)

## Contact

- office@neurobird.com
- https://neurobird.com/