South Carolina Small Contractor Bond The purpose of a small contractor bond is to make sure the contractors know and perform their work in accordance with local regulations, such as building codes. A surety bond ensures contract completion in the event of contractor’s default. These bonds also protect project owners and people who work directly with contractors. Contractors who require bonds for their small construction needs can depend on Palmetto to stand by their business for all their surety bond needs. We make the process easy and will establish a working relationship with you and your staff.