Surety bonds
Bond capacity can open the door to larger projects.
Prepare the financial, experience and project information a surety needs to evaluate the obligation.
Three parties—not two
A bond involves the principal that must perform, the obligee requiring the bond and the surety providing its financial guarantee. Unlike an insurance claim, a valid surety loss can create a reimbursement obligation under the indemnity agreement.
Performance and payment bonds
A performance bond supports completion of the bonded contract. A payment bond supports payment of qualifying subcontractors and suppliers. The contract, bond form, penal sum and applicable law define the obligation.
What a surety evaluates
- Company and personal financial statements
- Work in progress and current backlog
- Bank relationship and available working capital
- Relevant project experience and key personnel
- Contract terms, job size, duration and financing
Start before bid day
Bonding is easier when the file is assembled before a specific deadline. Discuss the largest single job, expected annual program and type of work so the agency can identify realistic next steps.
Ready for the next conversation?