Pre-Qualification Construction Bond Capacity

What is a Construction Bond Program

I have an in-depth article about getting started with a bond program you should read.

Watch the video on construction bonding capacity.

But at a high level a bond program is a framework for having the required surety bonds seamlessly approved and issued to meet the demands of your business.

A robust bond program consists of the three C's:

• Character - An in-depth look in you as the contractor including your reputation, bond history, credit history, and industry participation
• Capacity - How your current business manages projects including, employees, equipment, business administration, and risk management
• Capital - An ongoing up-to-date measure of your businesses financial strength

This bond program is an ongoing relationship with your bond producer (somebody like us at Surety Bonds Direct) and potentially one or more surety underwriters.

Are You An Emerging Construction Company?

If you're an emerging construction company building a portfolio of completed projects, you do not need to set up such a robust bond program.

Rather a simple soft credit check of you and your businesses ownership can get you approved up to $3 million in available bonding financial capacity. This is also called a line of credit.

You do not have to get approved for largest amount either, rather get approved for an amount that:

• Matches the project size you're currently bidding on
• Fits your businesses size and it's ability to get these projects done

Remember, this approval will streamline your needs to obtain the required:

• Project bid bond
• Contract performance bond
• Project payment bond

We also have a bid bond video, performance bond video, and payment bond video you can watch.

One of the factors that harms growing construction companies' ability to get bond approval is attempting to take on too many jobs at one time.

One small delay or cash flow issue can ruin a project and cause you to activate a surety bond for assistance.

If you're ready to get approved for a bond financial capacity that fits your business, click the button below or call a bond specialist. The process only takes a couple hours at most to complete.

Are You An Experienced Construction Company?

If you're an experienced construction company and you've successfully completed multiple projects, you're probably ready to take the next steps into larger projects and/or managing more projects at the same time.

Just like I mentioned above, you have to assess your business and find the bond financial limits that are right for your business.

If you don't need access to more than $3 million in construction bond capacity, then we can help you get approved within the next couple hours.

However if you require more than $3 million in capacity, we will need to set up a more robust bond program.

If the $3 million financial limit meets your current goals, click the button below or call a bond specialist to get the approval you need in only a couple hours.

What If You Need More Than $3 Million In Construction Bonds?

We are Surety Bonds Direct and as your construction bond producer we would set up a bond program that consists of regular check-ins.

Our role is to be your link to the right construction bond underwriter and ensure you get the surety bonds you need to bid on, win, and complete projects successfully.

You have to put yourself in the shoes of a construction bond underwriter. A surety underwriter wants to see:

• Your reputation with project owners is one where they recommend you or request you for future projects
• That you have never had a bond claim or that any claim was limited and legitimate and resolved quickly
• Your relationship with subcontractors ensuring project timelines are easily met
• Whether you own or rent equipment and your ability to move and use equipment between projects
• Your cash flow and reserves are capable of cover cash flow crunches until completed projects pay out

This includes quarterly Work in Progress (WIP) reporting. These are regular status updates on current projects:

• Where are you in a project and where do you expect to be by a certain date?
• How are your projects cash flows? And are you inline with projections?
• How is the project owner treating you as the contractor? Are they releasing required funds on-time?

These factors affect your ability to bid on a larger project or take on another project.

We can help you maintain this data on a regular basis and make sure we find you the right surety underwriter to meet your needs without putting your business at unnecessary risk.

If you're a construction business at this level, call a bond specialist today (1-800-608-9950) so we can meet and find out building a relationship would set you and us up to succeed.

The Likely First Step Is To Get Your First Construction Bond Capacity Approval

If you need your first construction bond pre-approval let's get you set up today.

Click the button below to complete a quote request. Treat this more as a way to tell us about your business and a financial level that fits your business size and goals.

If you prefer you can call a bond specialist (1-800-608-9950) and they will help assess your needs.