Read the latest news regarding Commercial, License, Permit, Contract, Court and Fidelity Surety Bonds, and how upcoming changes will affect your business. Check out our glossary page for more information on Surety Bond terminology.
You land a bid on the biggest project your company has ever pursued. The contract requires a performance bond, so you contact a surety agency, start the application, and submit the financials you have on hand. A week later, the underwriter comes back with questions, requests documentation you don’t have, and the process stalls. The … Continue reading “Why CPA-Prepared Financials Matter in Construction Bonding”
Read MoreJoint ventures and strategic partnerships are powerful tools for contractors looking to expand their capabilities, bid on larger projects, or enter new markets. But when it comes to bonding, these arrangements can introduce complexity. Before they’ll bond a joint venture, surety companies need to understand how the partnership works, who’s responsible for what, and how … Continue reading “Bonding for Joint Ventures and Partnerships”
Read MoreSurety bonds exist to protect project owners, government agencies, suppliers, and other stakeholders from financial loss if a contractor fails to meet their obligations. There’s a catch, though, as you’re ultimately on the hook to make it right if a claim is filed against your bond. Due to the financial implications of bond claims, understanding … Continue reading “What Happens When a Claim Is Filed Against Your Bond and What to Do If You’re Facing a Bond Claim: Contractor’s Guide”
Read MoreNearly 15% of Americans have poor credit, and contractors are no exception. A low credit score doesn’t have to stop you from getting bonded, but it does mean approaching the process with the right information and the right partners. If you plan to apply for a surety bond, learn more about how to get bonded … Continue reading “Can You Get Bonded with Bad Credit? Options for Contractors”
Read MoreWhen a construction project wraps up, most contractors are focused on closing out paperwork, collecting final payments, and moving on to the next job. But for many public and private projects, there’s still one more layer of protection in place: the maintenance bond. If you’ve been asked to provide a maintenance bond or you’re a … Continue reading “Maintenance Bonds: What Happens After the Project Ends?”
Read MoreAsk any contractor who’s preparing to bid on a public project, and they’ll tell you: you need to be bonded and insured. Both requirements show up in bid documents, both involve premiums, and both are designed to manage financial risk. So it’s easy to assume they’re two versions of the same thing. They’re not. Contractor … Continue reading “Surety Bonds vs. Insurance in Construction: Key Differences Contractors Need to Know”
Read MoreNote: This article covers contractor and professional license surety bonds and not immigration detention bonds or bail bonds. If you’re a contractor, business owner, or professional working in the United States but not a U.S. citizen, you may be wondering whether you can qualify for a surety bond. The good news is: yes, you generally … Continue reading “Can I Get a Surety Bond If I’m Not a U.S. Citizen?”
Read MoreIf you’re a contractor or business owner looking to take on larger projects or expand your operations, increasing your bonding capacity is a critical step. Bonding capacity is essentially the maximum amount of surety credit a bonding company is willing to extend to you. It determines how big a job you can bid on and … Continue reading “How Do I Increase My Bonding Capacity?”
Read MoreBond underwriters typically review business financial statements, ownership-backed financial strength, and cash-flow indicators to gauge capacity, risk, and pricing for your bond. Essentially, when you apply for a surety bond, the underwriter is trying to answer a simple question: Can you meet the obligation the bond guarantees? For many principals, especially contractors pursuing contract bonds, … Continue reading “What Financial Information Does a Bonding Company Look At?”
Read MoreIf you’re applying for a surety bond, whether it’s for a construction project, a business license, or a court requirement, your credit can influence what you pay and, in some cases, whether you need extra underwriting steps. Since a surety is taking on a risk and expecting reimbursement if a claim is paid, many surety … Continue reading “How Does My Credit Affect My Bonding”
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