Readiness check

Is your bonding capacity ready to win bigger work?

A surety bond is a three-party guarantee, not insurance, and your bonding capacity is what lets you bid bigger work. The surety underwrites you like a bank on the three Cs: character, capacity, and capital. Answer for how ready your company is to be bonded and to grow. This is general guidance, not legal or financial advice; confirm with your surety, broker, and CPA. The score stays on your device; enter an email only if you want the bonding readiness checklist sent over.

1. Do you understand a bond is a guarantee you must repay (indemnity), not insurance?Yes, we know we indemnify the suretyVaguelyWe thought it was like insurance

2. Do you know the bond types you need (bid, performance, payment)?Yes, we know which bonds for which workRoughlyNo

3. Do you have CPA-prepared financial statements (reviewed or audited)?Yes, reviewed or audited statementsCompiled or internal onlyNo real statements

4. Do you run a WIP schedule the surety can rely on for the capacity side?Yes, a clean WIPA rough oneNo WIP

5. Is your working capital and net worth strong enough to support the capacity you want?Yes, the capital backs the targetTightWeak or unknown

6. Do you have a track record and references (the character the surety bets on)?Yes, a clean record and referencesMixedLittle to show

7. Do you have a relationship with a surety specialist broker (not just an insurance agent)?Yes, a surety broker who advocates for usJust our insurance agentNo broker

8. Do you bid within your bonding capacity and avoid overextending?Yes, we bid within the single and aggregate limitsWe push it sometimesWe chase whatever, capacity aside