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Contracts & Legal

Consent of Surety

In Plain English

Written approval from the bonding company that they still stand behind their bond after a contract change.

Definition

A consent of surety is a written agreement by the surety company that issued a performance or payment bond approving a specific contract action, such as a change order, final payment, or contract reduction. It ensures the surety remains bound under its bond after material changes to the contract. Most standard contracts require consent of surety for significant contract modifications.

Why It Matters in Bidding

On bonded public and large private jobs, consent of surety is a gatekeeping document that protects the owner's bond coverage through change orders and final payment. Missing or late consent can stall an approved change order or hold up release of retainage, directly affecting a contractor's cash flow at the most sensitive points in the job.

Example

Before submitting its final pay application on a bonded school project, the GC obtains a consent of surety to final payment from its bonding company so the owner will release the remaining retention.

Related Terms

SuretyPerformance BondPayment BondChange Order

Frequently Asked Questions

It is typically required for material contract changes that affect the bonded obligation, such as large change orders, contract value reductions, time extensions, and release of final payment or retainage. Public contracts and AIA-based agreements usually spell out specific milestones where the owner must have written surety approval on file.
The contractor secures it from its own bonding company, then submits the executed form to the owner or architect. Because the surety issued the bond for that contractor, only the principal can request approval. Owners simply require it as a condition of processing change orders or releasing final payment.
A material change made without the surety's approval can discharge or reduce the surety's obligation, potentially voiding bond protection for that work. Owners therefore withhold approvals and payments until consent is in hand, which is why estimators and project teams should plan for surety processing time on bonded contracts.

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