Risky Business? The Complex Case of Surety Bonding in American Indian Country

Abstract

Surety bonds are financial instruments required for many construction projects. Both American Indian contractors and non-Indian contractors doing work in Indian Country face unique legal and financial obstacles to obtaining surety bonds. This paper uses qualitative and quantitative techniques to examine the nature of these challenges. While our quantitative research can only hint at possible barriers to credit, our qualitative research suggests American Indian contractors face significant barriers to obtaining surety bonds. In addition, tribes also face unique complications to surety bonding for construction projects in Indian Country; however, many have developed techniques to avoid such problems. We also propose a number of policy options to address the issues unique to Indian Country and analyze the strengths and weaknesses of each.