Bonding capacity limits the size of public and commercial work you can pursue. Here is how to grow it.
In this article
Why bonding capacity matters
Public projects and many commercial jobs require performance and payment bonds. Your bonding line sets how large a project and total backlog you can take. Growing it opens bigger opportunities.
How sureties evaluate
Financial strength, experience, management, backlog and character.
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Quality financial statements
CPA-prepared statements give sureties confidence.
Working capital
Cash and short-term assets minus liabilities are key.
Profitability
Consistent profits matter more than fast growth.
WIP schedules
Accurate work-in-progress reports show how jobs are performing.
Experience
Show completed projects of increasing size.
Specialized agent
A surety agent who knows construction helps you present the company well.
Grow gradually
Step up project sizes over time.
An example
A small GC kept profits in the company, moved to CPA-reviewed statements and built a relationship with a surety agent. Over a few years, its single-job limit grew enough to bid larger public projects.
Where to start
Meet a construction-focused surety agent and ask what your statements need to show for your next target project size.
Common mistakes
Taking cash out of the company, poor bookkeeping and jumping to projects far above your experience.
Run tighter jobs and win the right ones.
We help construction companies build the systems, online presence and client relationships that bring better projects.
Frequently asked questions
What do sureties look at to set bonding capacity?
Sureties typically evaluate financial statements, working capital, net worth, experience, backlog, management and the character of the company and its owners.