Securing a well-structured surety bond program is essential for contractors looking to grow their business and take on larger projects. The right bonding program should align with both per job limits and aggregate limits to ensure financial flexibility and operational stability. Here’s how to position your business effectively and maintain a strong bonding relationship.

Steps to Obtain a Well-Suited Bond Program

  1. Build Strong Financials: Surety companies assess your financial health when determining bond limits. Contractors should have:
  2. Strong cash flow and working capital.
  3. Well-organized financial statements reviewed by a CPA.
  4. A solid track record of profitability.
  5. Establish a Relationship with a Reputable Surety Agent: A knowledgeable surety professional helps match contractors with programs that fit their business needs. They should understand your industry, advocate on your behalf, and provide strategic guidance.
  6. Demonstrate a History of Successful Projects: Surety providers favor contractors who complete jobs on time and within budget. A history of meeting contractual obligations builds credibility.
  7. Improve Personal & Business Credit: Strong credit scores signal financial responsibility, making surety providers more comfortable granting larger bonding limits.
  8. Provide a Well-Organized Business Plan: Surety companies appreciate contractors with a clear vision. Your plan should outline:
    • Target project sizes.
      1. Growth strategies
      2. Risk management procedures.
      3. Operational efficiencies.

Maintain Proper Insurance Coverage: Adequate business insurance minimizes risk and reassures surety providers that unforeseen issues won’t derail projects.

Negotiate a Fair Work-in-Progress (WIP) Schedule: Ensuring a balanced workload prevents overextension, helping maintain a sustainable bonding capacity.

Steps to Maintain a Strong Bonding Program

  1. Keep Financials Updated: Surety companies conduct periodic reviews—keep financial records accurate and accessible.
  2. Limit Excessive Debt: High levels of debt reduce bonding capacity, so avoid unnecessary liabilities.
  3. Maintain Strong Vendor Relationships: Timely payments to suppliers and subcontractors strengthen your reputation and prevent claims against bonds.
  4. Communicate Regularly with Your Surety Agent: Transparency builds trust—keep your surety informed about project performance, growth plans, and financial updates.
  5. Plan for Growth Wisely: Expanding too quickly can strain resources and raise red flags for bonding providers.
  6. Avoid Bond Claims or Legal Issues: Bond claims negatively impact future bonding limits. Resolving disputes efficiently reduces the risk of claims.
  7. At Anastasi Insurance, we specialize in helping contractors secure and maintain surety bond programs tailored to their needs. Whether expanding bonding capacity or improving financial positioning, our expertise ensures contractors have the confidence to take on bigger and better opportunities. The key is strategic preparation—and we’re here to help every step of the way.