“How can I qualify for a bid, performance, or payment bond?” The answer to this question will depend on the size of your project. The larger the job, the more information you will need to provide for surety bond qualification and to obtain your bond.
Qualifying for Bonds on Small Jobs
If the bond is less than $750,000, typically, you will only need to provide a contractor questionnaire and information about the job you want to pursue. The surety company will then pull your credit. If it’s high enough, they may grant you bond approval.
Surety Bond Qualification on Larger Jobs
If the job is more extensive, the surety company will require more information:
- A contractor questionnaire
- A recent bank statement
- Job information
- 2-3 years of company year-end financials
- Recent personal financial statements on the owners
The surety may require more information based on the individual request. They will then utilize all the collected data to underwrite the risk of providing the surety bond.
Surety Bonds for Current Projects
If the project has already started, you will likely need to provide the surety an “all-is-well” letter. This is a letter from the job owner, ensuring the surety that there are no known issues with the current work.
Providing surety bonds can give you a competitive advantage over others in the same scope of work. It may also allow you to work on more public jobs and for general contractors who require their subcontractors to bond.
Reach Out to ZipBonds for More Information
If you have any questions, please contact the experts at Zip Bonds. We would be happy to walk you through the process and clear up any confusion.